2021
Annual Report
1391 Timberlake Manor Parkway | St. Louis, Missouri 63017
314.292.2000 | bunge.com
A L E T T E R F R O M G R E G O R Y H E C K M A N , B U N G E C E O
Dear Shareholders,
Shareholder Information
In 2021, the Bunge team did what it does best – deliver essential
other stakeholders to promote change at scale across the entire
food, feed and fuel while continuously improving our business so
supply chain.
that we can better serve our customers at both ends of the value
chain. As a result of our team’s hard work, Bunge delivered a record
performance, but the results did not come easily.
From this solid foundation, we look to the future with tremendous
optimism. We see additional growth opportunity in our core
oilseed processing and origination business with continued
Weather events, particularly Hurricane Ida in
the United States, disrupted supply chains as
did the ongoing pandemic with its waves of new
variants. Our team continued to put safety first
so that we were able to operate with only a few
localized interruptions.
Our team’s ability to successfully adapt to
changing and often challenging market
conditions is a credit to both their commitment
and the changes we have made to the business.
Creating end-to-end value chains has improved
the sharing of information, provided greater
accountability and driven efficiency. The way
In the past year,
the team
set records
in total
crush volume,
refining performance
and port volumes.
demand for our products, including renewable
feedstocks. Our announced joint venture with
Chevron is a significant step forward in building
the capability to make changes at scale to help
reduce carbon in our own and our customers’
value chains.
We also see great potential in our growing
specialty fats and oils and plant-based proteins
businesses. With our existing broad portfolio of
oils and our recent investments in plant-protein
ingredients, we are already serving some of the
leading companies in this category. We will
continue to invest, building on our global
we are using data is allowing us to make better risk, commercial
platform, leadership in oilseeds, and culture of innovation, to
and capital management decisions and capture market
benefit from this expanding market.
opportunities. The completion of the portfolio optimization
projects we had identified has improved our global platform and
strengthened our financial position.
While we enter 2022 with confidence, we also recognize the crisis
unfolding in Ukraine will create disruption and uncertainty for
global food supply chains. The essential work Bunge does in
We believe this transformation is creating tangible improvements
connecting farmers to consumers, managing risks and using our
in our performance with both our Agribusiness value chains and
global network to get food from where it is grown to where it is
our Refined and Specialty Oils teams posting outstanding results.
needed will be more important than ever.
In the past year, the team set records in total crush volume, refining
performance and port volumes. In addition, we had over 100 CapEx
projects greater than $1 million each in 2021, delivering them
safely with 95% of them on budget and on time.
I am honored to lead such an outstanding team and am proud of
what we have accomplished in 2021. Working together, we will
continue to deliver results for our customers, shareholders and
each other. And we will do so with a team who is passionate, bold
These accomplishments were done the right way. The team
and driven.
improved our safety performance in key categories with a 25%
reduction in our most severe injuries. We are also continuing to
focus on fighting climate change. In 2021, we announced Science-
Based Targets (SBTs) to achieve an absolute reduction in carbon
emissions for our own operations and in our supply chains. Our
industry leading commitment to have deforestation-free supply
chains in 2025 is a big part of our path to the achievement of our
Scope 3 target. We closed on the refinancing of a credit facility
tied to sustainability targets. And, we are actively engaging with
Thank you for your continued support.
Sincerely,
Gregory Heckman
Chief Executive Officer
Corporate Office
Bunge Limited
1391 Timberlake Manor Parkway
St. Louis, Missouri 63017
U.S.A.
314.292.2000
Contact Information
Corporate and Investor Relations
636.292.3014
Board of Directors
Kathleen Hyle, Chair
Sheila Bair, Deputy Chair
Carol Browner
Paul Fribourg
J. Erik Fyrwald
Gregory Heckman
Bernardo Hees
Michael Korobi
Kenneth Simril
Henry “Jay” Winship
Mark Zenuk
Executive Leadership Team
Gregory Heckman
Deborah Borg
Aaron Buettner
Robert Coviello
Christos Dimopoulos
Julio Garros
Pierre Mauger
John Neppl
Joseph Podwika
Robert Wagner
Transfer Agent and Registrar
Computershare, Inc.
P.O. Box 50500
Louisville, KY 40233-5000
U.S.A.
U.S. Shareholders Toll-Free
800.851.9677
Shareholders Outside the U.S.
201.680.6578
TDD for Hearing-Impaired U.S. Shareholders
800.952.9245
TDD for Hearing-Impaired Shareholders Outside the U.S.
201.680.6610
If you are a registered shareowner, you can access your Bunge
account online by going to www.computershare.com/investor
Additional Shareowner Information
Bunge’s annual report, filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and other SEC filings are
available to you on our website at www.bunge.com or you can
receive them via email by choosing to “Register for Email Alerts” on
the Investors page at www.bunge.com.
Stock Listing
New York Stock Exchange
Annual Meeting
Bunge’s Annual General Meeting of Shareholders will be held via
webcast at 11 a.m., Central Time, on May 12, 2022. See the proxy
statement for additional information.
Independent Auditors
Deloitte & Touche LLP
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
____________________________________________________________________________
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
☒
For the fiscal year ended December 31, 2021
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
☐
For the transition period from to
Commission File Number 001-16625
BUNGE LIMITED
(Exact name of registrant as specified in its charter)
Bermuda
(State or other jurisdiction of incorporation or
organization)
1391 Timberlake Manor Parkway
Chesterfield
Missouri
(Address of principal executive offices)
98-0231912
(I.R.S. Employer Identification No.)
63017
(Zip Code)
(314) 292-2000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Shares, $0.01 par value per share
BG
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ý No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities
Act. Yes o No ý
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer ý Accelerated filer ☐ Non-accelerated
filer
☐ Smaller reporting
company
☐ Emerging growth
company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by
the registered public accounting firm that prepared or issued its audit report. Yes ☒ No o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ý
The aggregate market value of registrant's common shares held by non-affiliates, based upon the closing price of our common
shares on the last business day of the registrant's most recently completed second fiscal quarter, June 30, 2021, as reported by the New
York Stock Exchange, was approximately $10,718 million. Common shares held by executive officers and directors and persons who
own 10% or more of the issued and outstanding common shares have been excluded since such persons may be deemed affiliates. This
determination of affiliate status is not a determination for any other purpose.
As of February 18, 2022, 141,302,184 Common Shares, par value $.01 per share, were issued and outstanding.
Portions of the proxy statement for the 2022 Annual General Meeting of Shareholders to be held on May 12, 2022 are
incorporated by reference into Part III.
DOCUMENTS INCORPORATED BY REFERENCE
2021 Bunge Annual Report
Table of Contents
PART I
Item 1.
Business
Item 1A.
Risk Factors
Item 1B.
Unresolved Staff Comments
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Item 7.
Properties
Legal Proceedings
Mine Safety Disclosures
PART II
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
Reserved
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Item 8.
Item 9.
Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures
Item 9B.
Other Information
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
PART III
Directors, Executive Officers, and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accounting Fees and Services
PART IV
Item 15.
Exhibits, Financial Statement Schedules
Schedule II—Valuation and Qualifying Accounts
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
SIGNATURES
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2021 Bunge Annual Report
Cautionary Statement Regarding Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward looking statements to
encourage companies to provide prospective information to investors. This Annual Report on Form 10-K includes forward
looking statements that reflect our current expectations and projections about our future results, performance, prospects and
opportunities. Forward looking statements include all statements that are not historical in nature. We have tried to identify these
forward looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan,"
"intend," "estimate," "continue" and similar expressions. These forward looking statements are subject to a number of risks,
uncertainties, assumptions and other factors that could cause our actual results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these forward looking statements. These factors include the risks,
uncertainties, trends and other factors discussed under the headings "Item 1A. Risk Factors," as well as "Item 1. Business,"
"Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this
Annual Report on Form 10-K, including:
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the impacts of the COVID-19 pandemic and other potential pandemic outbreaks;
the effect of weather conditions and the impact of crop and animal disease on our business;
the impact of 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, financial
markets regulation and environmental, tax and biofuels regulation;
the impact of seasonality;
the impact of government policies and regulations;
the outcome of pending regulatory and legal proceedings;
our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances;
the impact of 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;
the effectiveness of our capital allocation plans, funding needs and financing sources;
the effectiveness of our risk management strategies;
operational risks, including industrial accidents, natural disasters and cybersecurity incidents;
changes in foreign exchange policy or rates;
the impact of our dependence on third parties;
our ability to attract and retain executive management and key personnel; and
other factors affecting our business generally.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward looking
statements contained in this Annual Report on Form 10-K. Additional risks that we may currently deem immaterial or that are
not presently known to us could also cause the forward looking events discussed in this Annual Report on Form 10-K not to
occur. Except as otherwise required by federal securities law, we undertake no obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future events, changed circumstances or any other reason
after the date of this Annual Report on Form 10-K.
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2021 Bunge Annual Report
PART I
Item 1. Business
References in this Annual Report on Form 10-K to "Bunge Limited," "Bunge," "the Company," "we," "us" and "our" refer
to Bunge Limited and its consolidated subsidiaries, unless the context otherwise indicates.
Business Overview
We are a leading global agribusiness and food company with integrated operations that stretch from farmer to consumer.
We believe we are a leading:
•
•
•
•
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.
We also produce sugar and ethanol in Brazil, through our 50% interest in BP Bunge Bioenergia, a joint venture formed
with BP p.l.c ("BP") in December 2019 by the combination of our Brazilian sugar and bioenergy operations with the Brazilian
biofuels business of BP.
Since January 1, 2021 we have conducted our operations via four reportable segments: Agribusiness, Refined and
Specialty Oils, Milling, and Sugar and Bioenergy, organized based upon their similar economic characteristics, products and
services offered, production processes, types and classes of customer, and distribution methods. The Company’s remaining
operations are not reportable segments and are classified as Corporate and Other.
We further organize these reportable segments into Core operations and Non-core operations. Core operations
comprise our Agribusiness, Refined and Specialty Oils, and Milling segments.
Our Agribusiness segment is an integrated, global business principally involved in the purchase, storage, transportation,
processing and sale of agricultural commodities and commodity products. Our Agribusiness operations and assets are located in
North and South America, Europe and Asia-Pacific, and we have merchandising and distribution offices throughout the world.
The Refined and Specialty Oils segment includes businesses that sell vegetable oils and fats, including cooking oils,
shortenings, and specialty ingredients. The operations and assets of our Refined and Specialty Oils segment are primarily
located in North and South America, Europe and Asia-Pacific.
The Milling segment includes businesses that sell wheat flours, bakery mixes and corn-based products. The operations
and assets of our Milling segment are located in North and South America. During 2021, we announced the sale of our wheat
milling business in Mexico, which is expected to close during the second quarter of 2022.
Non-core operations comprise our Sugar and Bioenergy segment, which primarily comprises our 50% interest in the BP
Bunge Bioenergia joint venture.
History and Corporate Information
Bunge Limited is an exempted company limited by shares incorporated under the laws of Bermuda. We are registered
with the Registrar of Companies in Bermuda under registration number EC20791. We trace our history back to 1818 when we
were founded as a trading company in Amsterdam, The Netherlands. We are a holding company and substantially all of our
operations are conducted through our subsidiaries. Our principal executive offices and corporate headquarters are located at
1391 Timberlake Manor Parkway, Chesterfield, Missouri, 63017, United States of America, and our telephone number is
(314) 292-2000. Our registered office is located at 2 Church Street, Hamilton, HM 11, Bermuda.
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2021 Bunge Annual Report
Core Segments
Agribusiness Segment
Overview—Our Agribusiness segment is an integrated, global business involved in purchasing, storing, transporting,
processing and selling agricultural commodities and commodity products while managing risk across various value chains. The
principal agricultural commodities that we handle in this segment are oilseeds, primarily soybeans, rapeseed, canola, and
sunflower seed, and grains, primarily wheat and corn. We process oilseeds into vegetable oils and protein meals, principally for
the food, animal feed and biofuel industries, through a global network of facilities. Our footprint is well balanced, with
approximately 33% of our processing capacity located in South America, 26% in North America, 25% in Europe and 16% in
Asia-Pacific.
Customers—We sell agricultural commodities and processed commodity products to customers throughout the world.
The principal purchasers of our oilseeds, grains and oilseed meal are animal feed manufacturers, livestock producers, wheat and
corn millers, and other oilseed processors. As a result, our agribusiness operations generally benefit from global demand for
protein, primarily poultry and pork products. The principal purchasers of the unrefined vegetable oils produced in this segment
are our own refined and specialty oils businesses, third-party edible oil processors, which use these oils as raw materials in the
production of edible oil products for the food service, food processor and retail markets, as well as biofuel companies, which
use the oil as feedstock for biofuel production. In addition, we sell oil products for various non-food uses, including the
production of biofuels and industrial applications.
Distribution and Logistics—We have developed an extensive global logistics network to transport our products, including
trucks, railcars, river barges and ocean freight vessels. Typically, we either lease the transportation assets or contract with third
parties for these services. To better serve our customer base and develop our global distribution and logistics capabilities, we
own or operate either directly or through joint venture arrangements, various port terminal facilities, including in Brazil,
Argentina, the United States, Canada, Latvia, Ukraine, Poland, Vietnam and Australia.
Financial Services and Activities—We also offer various financial services, principally trade structured finance and
financial risk management services, to customers and other third parties. Our trade structured finance operations primarily
leverage our international trade flows to generate trade finance derived liquidity in emerging markets for third parties. Our
financial risk management services include structuring and marketing risk management products to enable agricultural
producers and end users of commodities to manage commodity price risk exposures. We also engage in foreign exchange and
other financial instrument trading via our financial services business. Additionally, we provide financing services to farmers,
primarily in Brazil, from whom we purchase soybeans and other agricultural commodities. Our farmer financing activities are
an integral part of our grain and oilseed origination activities as they help assure the annual supply of raw materials for our
Brazilian agribusiness operations.
Biodiesel—We own and operate conventional biodiesel facilities in Europe and Brazil and have equity method
investments in conventional biodiesel producers in Europe and Argentina. This business is complementary to our core
Agribusiness operations as in each case we supply some of the raw materials (refined or partially refined vegetable oil) used in
their production processes.
Raw Materials—We purchase oilseeds and grains either directly from farmers or indirectly through intermediaries.
Although the availability and price of agricultural commodities may, in any given year, be affected by unpredictable factors
such as weather, government programs and policies, and farmer planting and selling decisions, our operations in major crop
growing regions have enabled us to source adequate raw materials for our operational needs.
Competition—Due to their commodity nature, markets for our products are highly competitive and subject to product
substitution. Competition is principally based on price, quality, product and service offerings, and geographic location. Major
competitors include but are not limited to: The Archer Daniels Midland Co. ("ADM"), Cargill Incorporated ("Cargill"), Louis
Dreyfus Group ("Louis Dreyfus"), Glencore International PLC ("Glencore"), Wilmar International Limited ("Wilmar") and
COFCO International ("COFCO").
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2021 Bunge Annual Report
Refined and Specialty Oils Segment
Overview—We primarily sell our refined and specialty oil products to food processors, food service companies, and retail
outlets, as well as for feedstock to renewable diesel companies. The principal raw materials used in our Refined and Specialty
Oils segment are various crude and further processed vegetable oils and fats. These raw materials are mostly agricultural
commodities that we either produce or purchase from third parties. We believe that our global integrated business model
enables us to realize synergies among our Agribusiness, Refined and Specialty Oils and Milling segments through raw material
procurement, logistics, risk management and the co-location of industrial facilities, enabling us to supply customers with
reliable, high quality products on a global basis. As many of the products we sell in our Refined and Specialty Oils segment are
staple foods or ingredients, these businesses generally benefit from global population and income growth rates.
Products—Our refined and specialty oil products include packaged and bulk oils and fats, including cooking oils,
shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. We primarily use
soybean, sunflower, rapeseed and canola oil that we produce in our Agribusiness segment processing operations as raw
materials in this business. We also refine and fractionate palm oil, palm kernel oil, coconut oil, and shea butter, and blend
and refine olive oil. Additionally, we produce specialty ingredients derived from vegetable oils, such as lecithin, which is
used as an emulsifier in a broad range of food products. We are a leading seller of packaged vegetable oils worldwide, based
on sales. We have refined and specialty oils refining and packaging facilities in North America, South America, Europe,
Asia-Pacific, and Africa. Our refined and specialty oils business comprises our wholly-owned refined oils business in North
America, other business to business ("B2B") and business to consumer ("B2C") specialty oils offerings in South America,
Europe and Asia-Pacific, as well as Bunge Loders Croklaan ("Loders"), which itself is represented by our 70% ownership
interest in the Bunge Loders Croklaan joint venture with IOI.
In Brazil, our retail edible oil brands include Soya, the leading consumer packaged vegetable oil brand, as well as Primor
and Salada. Further, we are a leading supplier of shortenings to the food processor market and also produce staple food
products.
In the United States and Canada, we offer food manufacturers, bakeries, confectionary, and food service operators high-
quality solutions to fit their goals, such as delivering desired tastes and textures, or reducing trans-fats or saturated fats in their
products. Our products include trans-fat free high-oleic canola oil, which is low in saturated fats, and high-oleic soybean oil,
which is highly stable and trans-fat free. We have also developed proprietary fiber addition processes that allow bakery and
food processor customers to achieve significant saturated fat reductions in shortenings. We also offer expeller-pressed and
physically-refined oils to food service customers under the Whole Harvest brand, and produce margarines and buttery spreads,
including our leading Country Premium brand, for food service, food processor and retail private label customers.
Additionally, we sell refined vegetable oils as feedstock to the growing renewable diesel sector.
In Europe, we are a leader in consumer packaged vegetable oils, which are sold in various geographies under brand
names including Venusz, Floriol, Kujawski, Unisol, Kaliakra, Ideal, Oleina, Oliwier, Komili and Kirlangic. We are also a
leader in margarines, under brand names including Smakowita, Slynne, Maslo Rosline, Masmix, Optima, Finuu, Deli Reform,
Keiju, Venusz, Evesol, Carlshamn and Voimix. Additionally, we produce a variety of products for the confectionary and
bakery industries. We are also an oils supplier through Loders in the Western European food service channel.
In Asia, we offer a range of consumer products and offerings through Loders, including bakery, culinary, confectionary
and infant nutrition products. In India, our consumer brands include Dalda, Ginni and Chambal edible oils; Dalda and Gagan
vanaspatis; and Masterline professional bakery fats. In China, we offer consumer edible oils products under the Dou Wei Jia
brand.
Customers—Our customers include baked goods companies, snack food producers, confectioners, restaurant chains,
food service operators, infant nutrition companies, other food manufacturers who use vegetable oils and shortenings as
ingredients in their operations, and renewable diesels producers that use refined vegetable oils as feedstock. Other customers
include grocery chains, wholesalers, distributors, and other retailers who sell to consumers either under our own brand
names or private labels. These customers include global and national food processors and manufacturers, many of which are
leading brand owners in their product categories.
Competition—Competition is based on a number of factors, including price, raw material procurement, distribution
capability, cost structure, brand recognition, product quality, product innovation, technical support, composition and
nutritional value, and advertising and promotion. Our products may compete with widely advertised, well-known, branded
products, as well as private label and customized products. Our principal competitors in the Refined and Specialty Oils
segment include, but are not limited to: ADM, AAK AB, Cargill, Fuji Oil Co. Ltd. and Wilmar, as well as local competitors
in each region.
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2021 Bunge Annual Report
Milling Segment
Overview—We primarily sell our milling products to three customer types or market channels: food processors, food
service companies and retail outlets. The principal raw materials used in our milling businesses are wheat, corn, and other
agricultural commodities sourced from our Agribusiness segment or directly from third parties. Similar to our refined and
specialty oils business, we realize synergies among our other segments in areas such as raw material procurement, logistics, risk
management and the co-location of industrial facilities, enabling us to supply customers with reliable, high quality products on
a global basis. As many of the products we sell in our Milling segment are staple foods or ingredients, these businesses
generally benefit from macro population and income growth rates. Additionally, our Milling segment is focused on capitalizing
on growing global consumer food trends, including a desire for less processed, healthier foods, interest in new flavors, and
increases in snacking and eating outside the home.
Products—Our Milling segment activities include the production and sale of a variety of wheat flours and bakery mixes
in Brazil and Mexico, as well as corn-based products derived from both the dry and wet corn milling processes in the United
States and Mexico. During 2021, we announced the sale of our wheat milling business in Mexico, which is expected to close
during the second quarter of 2022.
Our brands in Brazil include Suprema, Soberana, Primor and Predileta wheat flours, Gradina and Pre-Mescla bakery
premixes and Ricca confectioner cream. Our wheat flour and bakery mix brands in Mexico include Espiga, Espiga Mix, Villa
Rica, Cuauhtemoc, San Vicente, Manitoba and Escudo Plus. Our corn milling products primarily consist of dry-milled corn
meals and flours, wet-milled masa and flours, flaking and brewers' grits, as well as soy-fortified corn meal, corn-soy blends, and
other similar products. As part of our corn portfolio, we also sell whole grain and fiber ingredients. In the United States, we
offer ancient grains, such as quinoa and millet, in our portfolio. We also produce a range of extruded products including die-cut
pellets for the snack food industry. Additionally, we offer non-GMO products in the United States, including corn varieties.
Customers—The primary customers for our wheat milling products are food processing, bakery and food service
companies. The primary customers for our corn milling products are companies in the food-processing sector, such as cereal,
snack, bakery and brewing companies, as well as the U.S. Government under its humanitarian assistance programs.
Competition—Competition is based on a variety of factors, including price, raw material procurement, brand recognition,
product quality, nutritional profile, dietary trends and distribution capabilities. In Brazil, our major competitors are M. Dias
Branco, J. Macedo and Moinho Anaconda, as well as many small regional producers. Our major competitors in Mexico include
Elizondo Agroalimentos, S.A. de C.V., Harinera Anáhuac, S.A. de C.V., Molinera de México S.A. de C.V., and Grupo Trimex
S.A. Our major competitors in North American corn milling include Cargill, Didion Inc., SEMO Milling, LLC, Life Line
Foods, LLC and Gruma S.A.B. de C.V.
Corporate and Other
Corporate and Other includes salaries and overhead for corporate functions that are not allocated to our individual
reporting segments because the operating performance of such segments is evaluated by our chief operating decision maker
exclusive of these items, as well as certain other activities including Bunge Ventures, the Company's captive insurance
program, accounts receivable securitization activities, and certain income tax assets and liabilities.
Non-core Segment
Sugar and Bioenergy Segment
Our Sugar and Bioenergy segment primarily comprises our 50% interest in BP Bunge Bioenergia, our joint venture with
BP formed in December 2019 by the combination of our Brazilian sugar and bioenergy operations with the Brazilian biofuels
business of BP. BP Bunge Bioenergia operates on a stand-alone basis with a total of 11 mills located across the Southeast,
North and Midwest regions of Brazil. BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in
the Brazilian sugarcane ethanol biofuel industry. Our Brazilian sugar and bioenergy operations had previously formed the
majority of our Sugar and Bioenergy segment through which we produced and sold sugar and ethanol derived from sugarcane,
as well as energy derived from the sugar and ethanol production process. As a result of forming this joint venture, we ceased to
consolidate our Brazilian sugar and bioenergy operations in our consolidated financial statements and now account for our
interest in the joint venture under the equity method of accounting. Accordingly, our reported Sugar and Bioenergy results for
2021 and 2020 include our share of the net earnings in BP Bunge Bioenergia, whereas our Sugar and Bioenergy results for 2019
reflect our former 100% ownership interest in the Brazilian sugar and bioenergy operations contributed to BP Bunge
Bioenergia. Although we are committed to supporting the growth and development of BP Bunge Bioenergia, our long-term
goal is to seek strategic opportunities for our investment in the joint venture, hence the designation of such operations as Non-
core.
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2021 Bunge Annual Report
The formation of BP Bunge Bioenergia combined our eight mills, the plantations we owned and managed, and related
assets, together with BP’s sugar and bioenergy business in Brazil, which included three mills and related assets. BP Bunge
Bioenergia's combined mills are supplied with sugarcane grown on approximately 450,000 hectares of land. In 2021,
approximately 75% of the joint venture's total milled sugarcane came from plantations owned or managed by BP Bunge
Bioenergia and 25% was purchased from third-party suppliers. These mills allow BP Bunge Bioenergia to produce sugar,
ethanol and electricity, as further described below.
•
•
•
Sugar-BP Bunge Bioenergia 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 its mills.
The sugar produced at BP Bunge Bioenergia’s mills is sold in both the Brazilian domestic market, primarily in the
confectionary and food processing industries, and export markets. The ethanol is sold primarily to customers for use in the
Brazilian domestic market to meet demand for fuel, with sugar and ethanol also exported in the international market. BP Bunge
Bioenergia competes with other sugar and ethanol producers both in Brazil and internationally, along with beet sugar processors
and producers of other sweeteners and biofuels in the global market. Major competitors in Brazil include Cosan Limited/
Raizen, São Martinho S.A. and Biosev ("Louis Dreyfus"). Major international competitors include British Sugar PLC,
Südzucker AG, Cargill, Tereos S.A., Sucden S.A., ED&F Man Limited and COFCO.
Risk Management
Risk management is a fundamental aspect of our business. Engaging in the hedging of risk exposures and anticipating
market developments are critical to protecting and enhancing our return on assets. As such, we are active in physical and
derivative markets for agricultural commodities, energy, ocean freight, foreign currency, and interest rates. We seek to leverage
the market insights that we gain through our global operations across our businesses by actively managing our physical and
financial positions on a daily basis. See "Item 7A. Quantitative and Qualitative Disclosures About Market Risk."
Insurance
In each country in which we conduct business, our operations and assets are subject to varying degrees of risk and
uncertainty. We insure our businesses and assets in each country in a manner that we deem appropriate for a company of our
size and activities, based on an analysis of the relative risks and costs. We believe that our geographic dispersion of assets helps
mitigate the risk to our business from an adverse event affecting a specific facility. However, if we were to incur a significant
loss or liability for which we were not insured in full or in part, it could have a materially adverse effect on our business,
financial condition and results of operations.
Operating Segments and Geographic Areas
We have included financial information about our reportable segments and our operations by geographic area in Note 28-
Segment Information to our consolidated financial statements included as part of this Annual Report on Form 10-K.
Research and Development, Innovation, Patents and Licenses
Our research and development activities are focused on developing products and improving processes that will drive
growth or otherwise add value to our core business operations. In our Refined and Specialty Oils and Milling businesses, we
have 15 research and development centers globally to support product development and enhancement. Additionally, Bunge
Ventures, our corporate venture capital unit, invests in start-ups and other early stage companies that are developing new
technologies relevant to our industries.
We own trademarks, patents and licenses covering certain of our products and manufacturing processes. However,
neither our business as a whole nor any segment is dependent on any specific trademark, patent or license.
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2021 Bunge Annual Report
Seasonality
In our Agribusiness segment, while there is a degree of seasonality in the growing season and procurement of our
principal raw materials, such as oilseeds and grains, we typically do not experience material fluctuations in volume between the
first and second half of the year, since we are geographically diversified between the northern and southern hemispheres and we
sell and distribute products throughout the year. However, the first quarter of the year has generally been our weakest in terms
of financial results due to the timing of the North and South American oilseed harvests, as the North American harvest peaks in
the third and fourth quarters, and the South American harvest peaks in the second quarter. Our North and South American grain
merchandising and oilseed processing activities are, therefore, generally at lower levels during the first quarter.
In our Refined and Specialty Oils and Milling segments, demand for certain of our food items may be influenced by
holidays and other annual events.
Government Regulation
In each of the countries in which we operate, we are subject to a variety of laws and regulations governing various
aspects of our business, including general business regulations as well as those governing the manufacturing, production,
handling, storage, transport, marketing and sale of our products. These include laws and regulations relating to facility licensing
and permitting, food and feed safety, the handling and production of regulated substances, nutritional and labeling
requirements, global trade compliance and other matters. Our operations and those of our suppliers are also subject to
restrictions on land use in certain protected areas, forestry reserve requirements, limitations on water use, as well as other
environmental regulations. Additionally, from time-to-time, agricultural production shortfalls in certain regions, and growing
demand for agricultural commodities for feed, food and fuel use have caused prices for relevant agricultural commodities to
rise. High commodity prices and regional crop shortfalls have led, and in the future may lead, governments to impose price
controls, tariffs, export restrictions and other measures designed to ensure adequate domestic supplies and/or mitigate price
increases in their domestic markets, as well as increase the scrutiny of competitive conditions in their markets.
Many countries use and produce biofuels as alternatives to traditional fossil fuels. Biofuels convert crops, such as
sugarcane, corn, soybeans, palm, rapeseed, canola, and other oilseeds, into ethanol, renewable diesel, or biodiesel to extend,
enhance or substitute for fossil fuels. Production of biofuels has increased significantly in the last decade in response to both
periods of high fossil fuel prices and to government incentives to produce biofuels offered in many countries, including the
United States, Brazil, Argentina and several South-East Asian and European countries. Furthermore, in several countries,
governmental authorities are mandating biofuel use in transport fuels at specified levels. As such, the markets for agricultural
commodities used in the production of biofuels have become increasingly affected by the growth of the biofuels industry and
related legislation.
We are subject to various environmental protection and occupational health and safety laws and regulations in the
countries in which we operate, and we incur costs to comply with these requirements. Compliance with applicable laws and
regulations relating to environmental matters has not had a material financial or competitive effect on our business. However,
due to our extensive operations across multiple industries and jurisdictions globally, we are exposed to the risk of claims and
liabilities under these laws and regulations. Violations can result in substantial fines, administrative sanctions, criminal
penalties, revocations of operating permits and/or shutdowns of our facilities, litigation, other liabilities, as well as damage to
our reputation.
Additionally, our business could be affected in the future by the regulation or taxation of greenhouse gas emissions or
policies related to national emission reduction plans. A number of jurisdictions in which we operate have implemented or are in
the process of implementing carbon pricing programs or regulations to reduce greenhouse gas emissions including, but not
limited to, the Unites States, Canada, Mexico, the European Union and its member states, and China. For example, the Biden
Administration has issued a series of executive orders and regulatory initiatives focused on climate change, including rejoining
the Paris Climate Agreement, pursuant to which the Administration has announced a goal of reducing U.S. greenhouse gas
emissions by one-half by 2030. Our operations located in countries with effective and applicable carbon pricing and regulatory
programs currently meet related existing obligations with, at this time, no significant impact on our results of operations and
competitive position. We regularly assess the potential impacts to our business resulting from regulation or policies aimed at
reducing greenhouse gas emissions. Potential consequences could include increased energy, transportation and raw material
costs, and additional investments to modify our facilities, equipment and processes. Although, at this time, it is not possible to
estimate the likelihood of passage or predict the potential impact of any additional legislation, regulations or agreements, the
effects of additional climate change regulatory initiatives could have a materially adverse impact on our business and results of
operations. The scope of physical effects of climate change, including shifts in agricultural production areas and climatic
volatility, is uncertain, but could in the long-term result in increased adverse incidents of weather-related events that cause
disruptions to our operations and may ultimately result in stranded physical assets. We currently believe the breadth and
diversification of our global asset network, as well as our participation in the global trade of agricultural commodities, will help
to mitigate these risks.
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2021 Bunge Annual Report
Sustainability
Bunge believes sustainability is critical to our business. This means we incorporate sustainability and environmental,
social and governance ("ESG") factors into many areas of our business, from how we plan and develop our strategic goals,
compensate our employees and operate our facilities, to how we engage with our customers, suppliers, employees,
communities, shareholders and other stakeholders. We encourage Bunge leadership around the globe to embrace sustainable
decision-making across our value chains built on a foundation of ethical leadership, accountability and environmental
stewardship.
A key component of Bunge’s sustainability strategy is to be a leader in our industry, urging sustainability and
responsibility throughout the supply chain from the farm to the table. Bunge has been a founder and active member of leading
industry associations and platforms to find practical solutions to certain sustainability challenges. In order to align with the
aspirations of the Paris Climate Agreement, we are committed to mitigating native vegetation conversion associated with
agricultural commodity production and trade and we intend to build on our shared efforts, working with governments, farmers,
and other key stakeholders in our supply chains, to identify opportunities for public-private collaboration focused on
eliminating commodity-driven deforestation.
To execute our strategy we have a defined sustainability framework that incorporates activities and commitments
supporting robust action on climate change, promoting responsible supply chains and ensuring accountability.
Governance
The Sustainability and Corporate Responsibility Committee ("SCRC") of the Board oversees sustainability at Bunge,
with certain ESG- related responsibilities integrated across other Board committees. The SCRC meets on a regular basis and is
tasked with oversight of governance, policies, strategies and programs related to a comprehensive set of sustainability and
corporate social responsibility factors which support the sustainable growth of the Company, including, but not limited to,
climate change, environmental matters, human rights, social development, risk management, external trends, external
stakeholder engagement, philanthropy, and reporting and disclosure. Additionally, the Enterprise Risk Management Committee
("ERMC") of the Board periodically evaluates climate-related risks and opportunities in connection with its oversight of
enterprise risks and risk mitigation strategies. The Audit Committee periodically evaluates applicable trends, risks and
developments in non-financial reporting practices and requirements which may impact the Company’s regulatory filings,
including ESG-related disclosures. The Human Resources and Compensation Committee ("HRCC") oversees the establishment
of sustainability linked-performance goals for our executives and workforce. The sustainability function is executed by the
Chief Sustainability Officer who reports to our Chief Executive Officer ("CEO").
Strategy
We are working to position Bunge to address the sustainability challenges facing the food, feed, and fuel supply chains in
which we operate. We intend to address those by, among other things, connecting farmers and our end-customers. For example,
Bunge is actively engaged in supplying low carbon feedstock for renewable fuels, sourcing and supplying grains planted under
regenerative agricultural practices, and supplying certified and verified deforestation-free grains and by-products, among other
initiatives.
Our commitment is guided by activities across three core pillars:
• Action on Climate—We implement innovative solutions designed to minimize our environmental footprint and
support projects and activities that strengthen our approach to fighting climate change.
• Responsible Supply Chains—We promote sustainable agriculture and implement projects that are designed to protect
and improve the environment, while supporting the social and economic well-being of growers and local communities.
• Accountability—We aim to be an accountable leader within our industry, helping to raise the bar on our sector’s
performance by regularly tracking and disclosing progress on our commitments and sustainability performance.
Risk Management
In 2021, Bunge began implementing enhancements to its enterprise risk management (ERM) framework by incorporating
more detailed sustainability risks and opportunities into the ERM process. These include risks emanating from changing climate
and weather patterns, water scarcity, deforestation, human rights, farmer productivity and increasing taxation and regulation on
greenhouse gas emissions. The enhanced ERM framework provides Bunge with greater oversight and management of climate-
related risks and the potential financial implications, and will help ensure continued short-, medium- and long-term resilience.
Climate risks are overseen at the Board of Directors level by the ERMC which has responsibility for supervising the
quality and integrity of our risk management practices. Enterprise risk management is overseen at the executive level by the
Chief Risk Officer, who reports to our CEO, with input from relevant teams and functions.
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2021 Bunge Annual Report
Metrics and Targets
Our employees and leaders work to expand the adoption of new technologies and energy sources, and partner with
suppliers to find ideal solutions that reduce our environmental footprint. Since 2008 we have pursued targets to reduce water,
waste, emissions and energy intensity usage in our facilities.
• Water – The consumption of water from natural sources is monitored periodically by our industrial teams. We monitor
and report data on water consumption from regions identified by objective third parties as being under "high stress."
We believe that it is important to focus on the areas where water availability is a higher risk, so we have developed a
more focused goal to reduce water usage from these areas.
•
Energy – We continuously work to improve energy efficiencies by implementing heat reuse methodologies (heat
exchangers) in some of our facilities and perform maintenance and replacement of engines with better performance
systems to create additional efficiencies across our operations. Additionally, we seek opportunities to reduce the
overall emissions from our electricity sources.
• Waste Disposal – Our operations have policies and procedures in place that determine what we believe to be the
correct operation related to waste management. For this purpose, we conduct periodic critical analyses to verify
performance.
•
Emissions – We have measurable targets in place for reducing energy consumption and the use of natural resources
that directly affect the amount of greenhouse gases emitted into the atmosphere, prioritizing the consumption of
renewable energy sources in our industrial units where feasible.
In 2021, we established Science Based Targets for absolute emissions reduction across Scopes 1, 2 and 3, in line with the
Paris Climate Agreement. To achieve these targets, Bunge may be required make significant enhancements across our global
operations, promote regenerative farming practices, and emphasize decarbonization in shipping and logistics. We expect that a
substantial portion of the emissions reduction within our supply chains will be driven by our commitment to achieve
deforestation-free supply chains by 2025, which we believe is the earliest in our industry.
Human Capital Resources
As of December 31, 2021, we employed more than 22,000 people. Many of our employees are represented by labor
unions and their employment is governed by collective bargaining agreements. In general, we consider our employee relations
to be good.
Our People
We care about our people. We listen, empower, develop and reward them with the goal of driving high levels of
engagement and commitment to Bunge. From hiring the best talent to diversity and inclusion initiatives, career development,
total employee rewards, and wellness, Bunge strives to create programs and resources that enhance our workplace environment.
Region
South America
EMEA (Europe, Middle East, Africa)
North America
Asia
Talent Acquisition
Headcount
8,539
6,578
4,528
3,061
At Bunge, we aim to attract the best talent to ensure a sustainable pipeline of talent needed for today and in the future. We
continue to focus on diversity of external hires to meet our overall workforce composition targets, using tools and partnerships
to enable a diverse and competitive candidate pool.
Diversity & Inclusion
We value inclusion and respect the diverse points of view employees bring to make Bunge a dynamic company. As a
global company we have a diverse workforce with a wide variety of skill sets and backgrounds critical to meeting the changing
needs of a growing world. Strongly guided by our fundamental values, the expertise of our teams is a competitive advantage in
connecting with thousands of people around the globe to serve our purpose to deliver essential food, feed and fuel. We are
committed to supporting and maintaining diversity and are enhancing our efforts to ensure our workforce, programs and
practices nurture inclusion and diversity.
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2021 Bunge Annual Report
Career & Development
We focus on training and development that helps employees develop the skills they need both today and in the future.
One of the greatest drivers of growth for our people is their own initiative and sense of career ownership. We encourage
employees to develop individual development plans and provide employees access to apply for internal career opportunities that
match their interests and skills.
Engaging Employees and Addressing Our Commitments
The engagement of our workforce is one of our strengths. We believe that constantly and actively listening to the voice of
our employees will continue to shape our success. We do that through a series of listening sessions and by measuring employee
engagement on an annual level. Our positive 2021 employee engagement survey results confirmed the strong foundation we are
building, reinforcing many elements of our culture.
Safety
The safety of our team and the communities in which we operate comes first. We believe safety is a shared responsibility.
Everyone has the right and responsibility to stop work if conditions become unsafe, regardless of position or experience. Our
safety program focuses on incident prevention through safety leadership at all levels.
Available Information
Our website address is www.bunge.com. Through the "Investors: Financial Information: SEC Filings" section of our
website, it is possible to access our periodic report filings with the Securities and Exchange Commission ("SEC") pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including our Annual Report
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports. Also,
filings made pursuant to Section 16 of the Exchange Act with the SEC by our executive officers, directors and other reporting
persons with respect to our common shares are made available through our website. Our periodic reports and amendments, and
the Section 16 filings, are available through our website free of charge as soon as reasonably practicable after such report,
amendment or filing is electronically filed with or furnished to the SEC.
Through the "Investors: Corporate Governance" section of our website, it is also possible to access copies of the charters
for our Audit Committee, Human Resources and Compensation Committee, Corporate Governance and Nominations
Committee, Sustainability and Corporate Responsibility Committee, and Enterprise Risk Management Committee, as well as
our Corporate Governance Guidelines and Code of Conduct. Each of these documents is made available free of charge.
The foregoing information regarding our website and its content is for your convenience only. The information contained
in or connected to our website is not deemed to be incorporated by reference in this report or filed with the SEC.
In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information
regarding issuers, where you may obtain a copy of all information we file publicly with the SEC. The SEC website address is
www.sec.gov.
Information About Our Executive Officers and Key Employees
Set forth below is certain information concerning the executive officers and key employees of the company.
Name
Gregory A. Heckman
Deborah Borg
Aaron Buettner
Robert Coviello
Christos Dimopoulos
Julio Garros
Pierre Mauger
John W. Neppl
Joseph A. Podwika
Robert Wagner
Ruth Ann Wisener
Brian Zachman
Position
Chief Executive Officer
Executive Vice President and Chief Human Resources and Communications Officer
President, Food Solutions
Senior Vice President, Sustainability and Government Affairs
President, Global Supply Chains
President, Agribusiness Development, Operations and Milling
Chief Transformation Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Legal Officer
Chief Risk Officer
Vice President, Investor Relations
President, Global Risk Management
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2021 Bunge Annual Report
Gregory Heckman, 59-Mr. Heckman has served as Chief Executive Officer since January 2019 and as a member of our
Board of Directors since October 2018. Mr. Heckman is the founding partner of Flatwater Partners, a private investment firm,
and has over 30 years of experience in the agriculture, energy and food processing industries. He served as Chief Executive
Officer of The Gavilon Group from 2008 to 2015. Prior to Gavilon, he served as Chief Operating Officer of ConAgra Foods
Commercial Products and President and Chief Operating Officer of ConAgra Trade Group. Mr. Heckman serves as a non-
executive director on the board of OCI N.V., a global producer of fertilizer and chemicals. He holds a Bachelor of Science
degree in Agricultural Economics and Marketing from the University of Illinois at Urbana-Champaign.
Deborah Borg, 45-Ms. Borg has served as Chief Human Resources and Communications Officer since January 2016.
Prior to joining Bunge in November 2015, she was President Dow USA at Dow Chemical, a role in which she was responsible
for regional business strategy and external relationships with customers, government organizations and joint venture partners.
She started her career at Dow in 2000 as Human Resources Manager for Australia / New Zealand and went on to hold regional
and business HR roles in Asia, Europe and North America. She also served as Global HR Director, Marketing and Sales, and
led the Human Capital Planning and Development function for Dow, focusing on talent acquisition, retention, diversity and
development. Previously, Ms. Borg served in HR and talent development roles with General Motors Australia. Ms. Borg serves
on the Board of Directors of Schweitzer-Mauduit International, Inc., a leading global performance materials company. She
holds a bachelor’s degree in Business Management in Human Resources and a master’s degree in Training and Change
Management from Victoria University, Australia.
Aaron Buettner, 48-Mr. Buettner has served as President, Food Solutions since January 1, 2022, having previously served
as President, Bunge Loders Croklaan (Loders) since May 2019. Mr. Buettner joined Bunge in September 2015 serving as Vice
President, Global Oils. Prior to joining Bunge, Mr. Buettner worked at Cargill for 19 years in a variety of commercial, finance
and general management leadership roles in the United States, Russia and Asia-Pacific refined oils businesses. He holds a
bachelor’s degree in Accounting and Computer Science from the University of Northern Iowa and an M.B.A. from the
University of Chicago Booth School of Business.
Robert Coviello, 53-Mr. Coviello has served as Chief Sustainability Officer and Government Affairs since May 2019. As
a member of the Bunge team for more than 18 years, Mr. Coviello has held a variety of commercial leadership positions in
Asia, Europe and the U.S. Prior to joining Bunge, Mr. Coviello served in trading roles at Cargill in the U.S. He holds a B.A.
from Dartmouth College and an M.B.A. from Harvard Business School. Mr. Coviello also serves on the Board of Directors of
Lamb Weston, a New York Stock Exchange company.
Christos Dimopoulos, 48-Mr. Dimopoulos has served as President, Global Supply Chains since May 2019. Mr.
Dimopoulos joined Bunge in 2004 as a grain trader and subsequently held a variety of roles of increasing responsibility in the
Agribusiness Segment, most recently serving as Senior Vice President Global Grains and Oilseeds. Prior to Bunge, Mr.
Dimopoulos held roles in Europe and the United States with Tradigrain and Intrade Risk Management. He holds a bachelor’s
degree in Business Management and Marketing from HEC Lausanne in Switzerland.
Julio Garros, 46-Mr. Garros has served as President, Agribusiness Development, Operations and Milling since March
2021. Mr. Garros joined Bunge in 2002 as a Financial Analyst in Argentina and subsequently held a variety of roles of
increasing responsibility across Finance, Commercial and Business Development in Argentina and Brazil, and most recently led
our global Agribusiness transformation to support the One Bunge operating model. Prior to joining Bunge, Mr. Garros worked
for PriceWaterhouseCoopers and as an auditor for Argentina’s Foreign Affairs Office. Mr. Garros earned his bachelor’s degree
from the Universidad National de Mar del Plata and has masters' degrees in Finance & Accounting and Economics from the
Palermo University.
Pierre Mauger, 49-Mr. Mauger has served as Chief Transformation Officer since May 2019. He joined Bunge in 2013 as
Chief Development Officer. Prior to Bunge, Mr. Mauger was a partner at McKinsey & Company, where he led the firm's
agriculture service line in Europe, the Middle East and Africa from 2009 to 2013, overseeing client relationships with leading
global companies in the commodity processing and trading, agrochemicals and fertilizer sectors, as well as with governments.
Prior to that, he served as a partner in the firm's consumer goods practice. He joined McKinsey as an associate in 2000.
Mr. Mauger previously worked as an auditor at Nestlé and KPMG. He holds a bachelor’s degree in Economics and Business
Finance from Brunel University in the United Kingdom and an M.B.A. from INSEAD.
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2021 Bunge Annual Report
John Neppl, 56-Mr. Neppl has served as Executive Vice President and Chief Financial Officer since joining Bunge in
May 2019. Mr. Neppl joined Bunge from Green Plains Inc., where he served as Chief Financial Officer. Prior to Green Plains,
Mr. Neppl served as Chief Financial Officer of The Gavilon Group, LLC, an agriculture and energy commodities management
firm with an extensive global footprint. Mr. Neppl held senior financial management positions at ConAgra Foods, Inc.,
including Senior Financial Officer of ConAgra Trade Group and Commercial Products division as well as Assistant Corporate
Controller. Prior to ConAgra, Mr. Neppl was Corporate Controller at Guarantee Life Companies. He began his career as an
auditor with Deloitte & Touche. He is a member of the Creighton University Heider College of Business Dean’s Advisory
Board. Mr. Neppl holds a bachelor’s degree in Business Administration with a major in Accounting from Creighton University.
He is also a certified public accountant (inactive status).
Joseph Podwika, 59-Mr. Podwika has served as Executive Vice President and Chief Legal Officer since joining Bunge in
November 2019. Mr. Podwika joined Bunge from Nutrien Ltd. where he was Executive Vice President and Chief Legal Officer.
He was previously Senior Vice President, General Counsel and Secretary with PotashCorp, where he was responsible for
delivery of legal services and the corporate compliance program, in addition to corporate governance processes in his role as
corporate secretary. Before joining PotashCorp, Mr. Podwika worked in the legal department of International Paper Company
and was in private practice with Jaeckle, Fleischmann & Mugel. He earned an English degree with highest honors at State
University of New York at Buffalo and a Juris Doctorate from Northwestern University School of Law.
Robert Wagner, 44-Mr. Wagner has served as Chief Risk Officer since joining Bunge in June 2019. Prior to joining
Bunge, Mr. Wagner was Chief Risk Officer at Tricon International, Ltd. with global responsibility and leadership of the
company’s risk management team. Prior to Tricon, he was Group Chief Risk Officer at COFCO Agri Ltd in Geneva,
Switzerland, where he was responsible for leading a team to build and provide world-class risk oversight across the company’s
global operations. Prior to COFCO, he held the Chief Risk Officer position for The Gavilon Group, LLC, where he was
member of the firm’s Executive Committee and had responsibility for both the market risk management and credit departments.
Mr. Wagner earned a Bachelor of Science degree in International Business from Minnesota State University at Moorhead and a
Master of Science degree in Agricultural Economics from North Dakota State University. He also holds an M.B.A. from
Creighton University.
Ruth Ann Wisener, 56-Ms. Wisener has served as Vice President of Investor Relations since joining Bunge in March
2019. Prior to joining Bunge, Ms. Wisener worked in leadership positions in a variety of legal, finance, and commercial roles at
Tyson Foods and ADM, among others. She holds a Bachelor’s degree in Political Science from Hendrix College and a Juris
Doctorate from the University of Arkansas School of Law.
Brian Zachman, 50-Mr. Zachman has served as President of Global Risk Management since joining Bunge in January
2019. In 2021, the Board of Directors approved an amendment to the terms of Mr. Brian Zachman’s employment agreement to
extend the term of the agreement from December 31, 2021 until December 31, 2022, provided that, among other items, from
January 1, 2022 through March 31, 2022, Mr. Zachman will ensure a smooth transition of his responsibilities to other members
of the senior executive team, and effective April 1, 2022 through December 31, 2022 Mr. Zachman will become a risk
management advisor to the Company’s Chief Executive Officer. Prior to joining Bunge in 2019, Mr. Zachman held portfolio
management positions focused on agricultural commodity derivatives, most recently with Millennium Limited Partners since
2014 and prior to that with SAC Capital from 2012 to 2014. Mr. Zachman previously worked at Bunge from 1999 to 2012,
serving in a number of commercial and trading roles within Agribusiness. Prior to that, he held various commercial and
merchant roles with Cargill and ConAgra. Mr. Zachman holds a Bachelor of Arts degree in Economics from the University of
Minnesota-Duluth.
Item 1A. Risk Factors
Risk Factors
Our business, financial condition or results of operations could be materially adversely affected by any of the risks and
uncertainties described below. Additional risks not presently known to us, or that we currently deem immaterial, may also
impair our financial condition and business operations. See "Cautionary Statement Regarding Forward Looking Statements."
Risks Relating to Our Business and Industries
Our operations may be adversely impacted as a result of pandemic outbreaks, including COVID-19.
On March 11, 2020 the World Health Organization designated the coronavirus disease 2019, or COVID-19, outbreak as a
global pandemic. To date, millions of cases have been confirmed globally, and the number of reported cases continues to
increase, including in all major geographies in which we operate. The ongoing pandemic could adversely affect our operations,
major facilities, or employees’ and consumers’ health in the future, which could interfere with general commercial activity
related to our supply chain and customer base, and in turn could have a material adverse effect on our business, financial
condition, or results of operations.
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2021 Bunge Annual Report
Since 2020 government officials in numerous countries around the world have imposed measures in response to the
pandemic, including vaccination and masking requirements, protocols related to workplace activities, travel and large gathering
restrictions, social distancing requirements, quarantines and shelter-in-place and stay-at-home orders. Many of these restrictions
remain in place today. There can be no assurance that such restrictions will be effective or achieve their desired results in a
timely fashion or at all. Even as efforts to contain the pandemic have made progress and some restrictions have eased, an
increase in the number of observed COVID-19 cases, including as a result of any resurgence and new variants, may lead to
governments reinstituting or re-imposing travel and work restrictions or imposing additional restrictions. In locations where
such restrictions are in place Bunge has been deemed an essential or life-sustaining operation. To date we have not seen a
significant disruption in our supply chain, have been able to mitigate logistics and distribution issues that have arisen, and
substantially all of our facilities around the world have continued to operate at or near normal levels. We have, however,
experienced minor temporary workforce disruptions in our supply chain as a result of the COVID-19 pandemic, including
increased labor shortages and increased turnover. We have established an internal task force to closely monitor developments
related to the pandemic and have implemented employee safety measures based on guidance from the Centers for Disease
Control and Prevention, the World Health Organization, and local requirements and guidelines, across all our facilities,
including proper hygiene, social distancing, mask use, and temperature screenings. These measures may not be sufficient to
prevent the spread of COVID-19 among our employees. Further, in the future it may be challenging to obtain and process raw
materials to support our business needs, and individuals could become ill, quarantined or otherwise unable to work and/or travel
due to health reasons or governmental restrictions, which may place constraints on the timeliness of our production capabilities
or may increase our costs. Additionally, governments may impose other laws, regulations or taxes that could adversely impact
our business, financial condition or results of operations. The challenges faced in the ongoing implementation of COVID-19
vaccinations can also extend the impacts on our business. While we are strongly encouraging our employees to be vaccinated
when available in their countries, and facilitating this when possible, our business may be impacted by the effectiveness of
vaccination programs that are implemented in the markets in which we operate, the implementation of vaccination mandates in
areas where we operate, and the willingness and ability of our workforce to participate in these vaccination programs. Even
after the COVID-19 pandemic has moderated and business and social distancing restrictions have eased, we may continue to
experience similar effects to our businesses, consolidated results of operations, financial position and cash flows, resulting from
a recessionary economic environment that may persist.
In addition, we cannot predict the impact that the COVID-19 pandemic will have on our customers, suppliers, vendors,
joint venture and other business partners, and each of their financial conditions. Any material adverse effect on these parties,
including due to disruptions in supply chain, could adversely impact us. In this regard, the potential duration and impacts of the
COVID-19 pandemic on the global economy and on our business, financial condition and results of operations are difficult to
predict and cannot be estimated with any degree of certainty, but the pandemic has resulted in the significant disruption of
global financial markets and increased levels of unemployment and economic uncertainty, which may adversely impact our
business. These developments may lead to significant negative impacts on customer spending, demand for our products, the
ability of our customers to pay, our financial condition and the financial condition of our suppliers and may also negatively
impact our access to external sources of financing to fund our operations or make capital expenditures.
The potential effects of COVID-19 also could impact certain of our risk factors listed in this Item 1A. Risk Factors.
However, due to continually evolving health, economic, social, and governmental environments, the potential impact that
COVID-19 could have on our risk factors further described below, and others that cannot yet be identified, remains uncertain.
Adverse weather conditions, including as a result of climate change, may adversely affect the availability, quality and price
of agricultural commodities and agricultural commodity products, as well as our operations and operating results.
Adverse weather conditions have historically caused volatility in the agricultural commodity industry and consequently in
our operating results by causing crop failures or significantly reduced harvests, which may affect the supply and pricing of the
agricultural commodities that we sell and use in our business, reduce demand for our fertilizer products and negatively affect
the creditworthiness of agricultural producers who do business with us.
Severe adverse weather conditions, such as hurricanes or severe storms, may also result in extensive property damage,
extended business interruption, personal injuries and other loss and damage to us. Our operations also rely on dependable and
efficient transportation services. A disruption in transportation services as a result of weather conditions or otherwise, may also
significantly adversely impact our operations.
Additionally, the potential physical impacts of climate change are uncertain and may vary by region. These potential
effects could include changes in rainfall patterns, water shortages, changing sea levels, changing storm patterns and intensities,
shifts in agricultural production areas, changing temperature levels, and climatic volatility. The frequency and severity of the
effects of climate change or weather patterns have been increasing and could adversely impact our business operations, the
location, costs and competitiveness of global agricultural commodity production and related storage and processing facilities, as
well as the supply and demand for agricultural commodities, and may result in incidents of stranded physical assets. These
effects could be material to our results of operations, liquidity or capital resources.
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We are subject to fluctuations in agricultural commodity and other raw material prices, energy prices and other
factors outside of our control that could adversely affect our operating results.
Prices for agricultural commodities and their by-products, including, among others, soybeans, corn, wheat, sugar and
ethanol, like those of other commodities, are often volatile and sensitive to local and international changes in supply and
demand caused by factors outside of our control, including farmer planting and selling decisions, currency fluctuations,
government agriculture programs and policies, pandemics (such as the COVID-19 pandemic), governmental restrictions or
mandates, global inventory levels, demand for biofuels, weather and crop conditions, and demand for and supply of competing
commodities and substitutes. These factors may cause volatility in our operating results.
In 2021, certain of our raw material input costs increased materially and at a rapid rate. We expect the pressures of input
cost inflation to continue into 2022. We may not be able to generate sufficient productivity improvements, price increases or
commodity hedging benefits to fully offset these costs, or do so on an acceptable timeline. To the extent we are unable to
offset present and future input cost increases, our operating results could be materially and adversely affected.
Additionally, our operating costs and the selling prices of certain of our products are sensitive to changes in energy
prices. Our industrial operations utilize significant amounts of electricity, natural gas and coal, and our transportation
operations are dependent upon diesel fuel and other petroleum-based products. Significant increases in the cost of these items
and currency fluctuations could adversely affect our operating costs and results. We also sell certain biofuel products, such as
ethanol, renewable diesel, and biodiesel, which are closely related to, or may be substituted for, petroleum products. As a
result, the selling prices of ethanol, renewable diesel, and biodiesel can be impacted by the selling prices of oil, gasoline and
diesel fuel. In turn, the selling prices of the agricultural commodities and commodity products that we sell, such as corn and
vegetable oils that are used as feedstocks for biofuels, are also sensitive to changes in the market price for biofuels, and
consequently world petroleum prices. Prices for petroleum products and biofuels are affected by market factors and
government fuel policies, over which we have no control. Lower prices for oil, gasoline or diesel fuel could result in
decreased selling prices for ethanol, renewable diesel, biodiesel and their raw materials, which could adversely affect our
revenues and operating results.
Our business is seasonal, and our results may fluctuate depending on the harvest cycle of the crops upon which we rely and
seasonal fluctuations related to the sale of our consumer products.
As with any agricultural business enterprise, our business operations are seasonal in nature. For example, in our
Agribusiness segment, while there is a degree of seasonality in the growing season and procurement of our principal raw
materials, such as oilseeds and grains, we typically do not experience material fluctuations in volume between the first and
second half of the year since we are geographically diversified between the northern and southern hemispheres. The first
quarter of the year, however, has generally been our weakest in terms of financial results due to the timing of the North and
South American oilseed harvests, as the North American oilseed harvest peaks in the third and fourth quarters, while the South
American harvest peaks in the second quarter. This creates price fluctuations, which result in fluctuations in our inventories
and a degree of seasonality in our gross profit. In addition, certain of our consumer food products are influenced by holidays
and other annual events. Seasonality could have a material adverse effect on our business and financial performance. In
addition, our quarterly results may vary as a result of the effects of fluctuations in commodities prices, production yields and
costs.
We face intense competition in each of our businesses.
We face significant competition in each of our businesses and we have numerous competitors, some of which are larger,
more diversified and have greater financial resources than we have. Additionally, in recent years we have experienced
regional Agribusiness competitors entering new geographies where previously they did not compete with us, and certain
customers seeking to procure certain commodities directly rather than through historical suppliers such as us. As many of the
products we sell are global commodities, the markets for our products are highly price competitive, and in many cases also
sensitive to product substitution. Additionally, the geographic location of assets can competitively advantage or disadvantage
us with respect to our competitors in certain regions. We also face competition from changing technologies and shifting
industry practices, such as increased on-farm crop storage in several regions, which allows producers to retain commodities
for extended periods and increase price pressure on purchasers such as us. To compete effectively, we must continuously
focus on improving efficiency in our production and distribution operations, including through business optimization
initiatives, developing and offering products that meet customer needs, optimizing our geographic presence in key markets,
developing and maintaining appropriate market share and customer relationships, supporting socially responsible and
sustainable corporate and business practices, and promoting our environmental stewardship. We also compete for talent in
our industries, particularly commercial personnel. Competition could cause us to lose market share and talented employees,
exit certain lines of business, increase marketing or other expenditures, increase our raw material costs or reduce pricing,
each of which could have an adverse effect on our business and profitability.
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We are vulnerable to the effects of supply and demand imbalances in our industries.
Historically, the market for some agricultural commodities and fertilizer products has been cyclical, with periods of
high demand and capacity utilization stimulating new plant investment and the addition of incremental processing or
production capacity by industry participants to meet the demand. The timing and extent of this expansion may then produce
excess supply conditions in the market, which, until the supply/demand balance is again restored, negatively impacts product
prices and operating results. During times of reduced market demand, we may suspend or reduce production at some of our
facilities. The extent to which we efficiently manage available capacity at our facilities will affect our profitability. We also
expect the results from our equity investment in the BP Bunge Bioenergia joint venture to be impacted by any potential
shortage of, or increasing costs for, sugarcane.
We are subject to global and regional economic downturns and related risks.
The level of demand for our products is affected by global and regional demographic and macroeconomic conditions,
including population growth rates and changes in standards of living. A significant downturn in global economic growth, or
recessionary conditions in major geographic regions, may lead to reduced demand for agricultural commodities and food
products, which could adversely affect our business and results of operations. Further, deteriorating economic and political
conditions in our major markets affected by the COVID-19 pandemic, such as increased unemployment, decreases in
disposable income, declines in consumer confidence, inflation, or economic slowdowns or recessions, could cause a decrease in
demand for our products.
Additionally, weak global economic conditions and adverse conditions in global financial and capital markets, including
constraints on the availability of credit, have in the past adversely affected, and may in the future adversely affect, the financial
condition and creditworthiness of some of our customers, suppliers and other counterparties, which in turn may negatively
impact our financial condition and results of operations. See "Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" and "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" for more
information.
For example, as Brazil emerges from the COVID-19 pandemic it has experienced slowing a GDP growth rate coupled
with relatively high interest rates. Additionally, presidential elections are scheduled to occur at the end of 2022. The above
factors may result in an uncertain economic and political environment, which could lead to reduced demand for our refined and
specialty oils and milling products in the country. Additionally, a slowdown in China's economy over a prolonged period could
lead to reduced global demand for agricultural commodities. To the extent that such economic and political conditions
negatively impact consumer and business confidence and consumption patterns or volumes, our business and results of
operations could be significantly and adversely affected.
We are subject to economic, political and other risks of doing business globally and in emerging markets.
We are a global business with a substantial majority of our assets and operations located outside the United States. In
addition, our business strategies may involve expanding or developing our business in emerging market regions, including
Eastern Europe, Asia-Pacific, the Middle East and Africa. Due to the international nature of our business, we are exposed to
various risks of international operations, including:
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adverse trade policies or trade barriers on agricultural commodities and commodity products;
government regulations and mandates in response to the COVID-19 pandemic;
new and developing requirements related to greenhouse gas emissions and other climate change initiatives and
workforce diversity and inclusion mandates;
inflation, 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. For example, inflation rates in many
countries in which we operate are currently at the highest levels in decades, resulting in expectations of tighter
monetary policies including higher interest rates in the near future. In addition, in Turkey, a country in which
Bunge operates, annualized inflation has recently surged to nearly 50% per year. As such, if Turkey's inflation
level does not subside, there is a heightened risk that Turkey's economy could become hyperinflationary;
changes in laws and regulations or their interpretation or enforcement in the countries in which 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-
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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;
changes in a country’s or region’s economic or political condition; and
labor disruptions, civil unrest, significant political instability, coup attempts, wars or other armed conflict or acts of
terrorism. As of the date of issuance of this Annual Report on Form 10-K, we are monitoring the military conflict
involving Russia and Ukraine. We maintain operations in both countries, which represent key international grain
originating regions. The outcome of the ongoing conflict is uncertain. Our operations in Ukraine have been
interrupted and a continuation of the conflict may have a material adverse effect on our Ukrainian operations. At
December 31, 2021, we had total assets and total liabilities of $681 million and $484 million, respectively, in
Ukraine. Additionally, in response to the conflict, the United States, other North Atlantic Treaty Organization
member states, as well as non-member states, have announced targeted economic sanctions on Russia, certain
Russian citizens and enterprises. The continuation of the conflict may trigger a series of additional economic and
other sanctions enacted by the United States, other North Atlantic Treaty Organization member states, and other
countries. As we maintain operations in Russia, any such sanctions may also result in an adverse effect on our
Russian operations. At December 31, 2021, we had total assets and total liabilities of $121 million and $36 million,
respectively, in Russia.
These risks could adversely affect our operations, business strategies and operating results.
As a result of our international operations, we are also exposed to currency exchange rate fluctuations. Changes in
exchange rates between the U.S. dollar and other foreign currencies, particularly the Brazilian real, Canadian dollar, the
euro, and Chinese yuan/renminbi affect our revenues and expenses that are denominated in local currencies, affect farm
economics in those regions and may also have a negative impact on the value of our assets located outside of the United
States.
Additionally, there continues to be a great deal of uncertainty regarding U.S. and global trade policies for companies with
multinational operations like ours. In recent years, there has been an increase in populism and nationalism in various countries
around the world and consequently historical free trade principles are being challenged. As we continue to operate our business
globally, our success will depend, in part, on the nature and extent of any such changes and how well we are able to anticipate,
respond to and effectively manage any such changes.
Government policies and regulations affecting the agricultural sector and related industries could adversely affect our
operations and profitability.
Agricultural commodity production and trade flows are significantly affected by government policies and regulations.
Governmental policies affecting the agricultural industry, such as taxes, tariffs, duties, subsidies, import and export restrictions,
price controls on agricultural commodities, and energy policies (including biofuels mandates), can influence industry
profitability, the planting of certain crops versus other uses of agricultural resources, the location and size of crop production,
whether unprocessed or processed commodity products are traded, and the volume and types of imports and exports.
Additionally, regulation of financial markets and instruments in the United States and internationally may create uncertainty as
these laws are adopted and implemented and may impose significant additional risks and costs that could impact our risk
management practices. Further, increases in food and fertilizer prices have in the past resulted in increased scrutiny of our
industries under antitrust and competition laws in various jurisdictions and increase the risk that these laws could be interpreted,
administered or enforced in a manner that could affect our operations or impose liabilities on us that could have a material
adverse effect on our operating results and financial condition. Future governmental policies, regulations or actions impacting
our industries may adversely affect the supply of, demand for, and prices of our products, restrict our ability to do business in
existing and target markets, or engage in risk management activities and otherwise cause our financial results to suffer.
Finally, international trade disputes can adversely affect agricultural commodity trade flows by limiting or disrupting
trade between countries or regions, particularly disputes involving the United States and China. This has in the past led and
can in the future lead to significant volatility in commodity prices, disruptions in historical trade flows and shifts in planting
patterns in the United States and South America, which have presented challenges and uncertainties for our business. We
cannot predict the impacts that future trade policy or the terms of any negotiated trade agreements could have on our
business and operations.
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We may not realize the anticipated benefits of acquisitions, divestitures or joint ventures.
We have been an active acquirer of other companies, and we have joint ventures with several partners. Part of our
strategy involves acquisitions, alliances and joint ventures designed to expand or optimize our portfolio of businesses. Our
ability to benefit from acquisitions, joint ventures and alliances depends on many factors, including our ability to identify
suitable prospects, access funding sources on acceptable terms, negotiate favorable transaction terms and successfully
consummate and integrate any businesses we acquire. In addition, we proactively review our portfolio of businesses in order
to identify opportunities to enhance shareholder value and may decide as a result of such reviews or otherwise, from time to
time, to divest certain of our assets or businesses by selling them or entering into joint ventures. Our ability to successfully
complete a divestiture will depend on, among other things, our ability to identify buyers that are prepared to acquire such
assets or businesses on acceptable terms and to adjust and optimize our retained businesses following the divestiture.
Our acquisition, joint venture or divestiture activities may involve unanticipated delays, costs and other problems. If
we encounter unexpected problems with acquisitions, joint ventures or divestitures, our senior management may be required
to divert attention away from other aspects of our businesses to address these problems. Additionally, we may fail to
consummate proposed acquisitions, joint ventures or divestitures, after incurring expenses and devoting substantial
resources, including management time, to such transactions.
Acquisitions also pose the risk that we may be exposed to successor liability relating to actions by an acquired company
and its management before the acquisition. The due diligence we conduct in connection with an acquisition, the controls and
policies we implement at acquired companies and any contractual guarantees or indemnities that we receive from the sellers
of acquired companies, may not be sufficient to protect us from, or compensate us for, actual liabilities. A material liability
associated with an acquisition could adversely affect our reputation and results of operations and reduce the benefits of the
acquisition. Additionally, acquisitions involve other risks, such as differing levels of management and internal control
effectiveness at the acquired entities, systems integration risks, the risk of impairment charges relating to goodwill and
intangible assets recorded in connection with acquisitions, the risk of significant accounting charges and expenses resulting
from the completion and integration of a sizable acquisition, the need to fund increased capital expenditures and working
capital requirements, our ability to retain and motivate employees of acquired entities, compliance and reputational risks and
other unanticipated problems and liabilities.
Divestitures may also expose us to potential liabilities or claims for indemnification, as we may be required to retain
certain liabilities or indemnify buyers for certain matters, including environmental or litigation matters associated with the
assets or businesses that we sell. The magnitude of any such retained liability or indemnification obligation may be difficult
to quantify at the time of the transaction and its cost to us could ultimately exceed the proceeds we receive for the divested
assets or businesses. Divestitures also have other inherent risks, including possible delays in closing transactions (including
potential difficulties in obtaining regulatory approvals), the risk of lower-than-expected sales proceeds for the divested
businesses and unexpected costs or other difficulties associated with the separation of the businesses to be sold from our
information technology systems and other management processes, including the loss of key personnel. Further, expected
cost savings or other anticipated efficiencies or benefits from divestitures may also be difficult to achieve or maximize.
Additionally, we have several joint ventures and investments in which we have limited control over governance,
financial reporting and operations. As a result, we face certain operating, financial and other risks relating to these
investments, including risks related to the financial strength of our joint venture partners or their willingness to provide
adequate funding for the joint venture, having differing objectives from our partners, the inability to implement some actions
with respect to the joint venture's activities that we may believe are favorable if the joint venture partner does not agree,
compliance risks relating to actions of the joint venture or our partners, and the risk that we will be unable to resolve disputes
with the joint venture partner. As a result, these investments may contribute significantly less than anticipated to our earnings
and cash flows. In December 2019, we entered into the BP Bunge Bioenergia joint venture related to our sugar and ethanol
business in Brazil, which resulted in the transfer of all assets and operations of this business into a new entity in which we
hold a 50% interest. We share control in BP Bunge Bioenergia with BP, our joint venture partner, and as a result our ability
to realize the benefits of this joint venture will depend in part on our ability to work with and cooperate with BP, as well as
the talent of the leadership of BP Bunge Bioenergia. In addition, the business and financial performance of the BP Bunge
Bioenergia joint venture may be adversely affected if there is a significant shortage of sugarcane supply, which is the
principal raw material used in the production of ethanol and sugar, or if there is an increase in the cost of available
sugarcane, which could result from any termination of the joint venture’s partnership or supply contracts.
We are subject to industry and other risks that could adversely affect our reputation and financial results.
We are subject to food and feed industry risks which include, but are not limited to, spoilage, contamination, tampering
or other adulteration of products, product liability claims and recalls. We are also subject to shifts in customer and consumer
preferences, including as a result of COVID-19, and concerns regarding the outbreak of disease associated with livestock and
poultry, including avian or swine influenza. Also, increasing focus on climate change, deforestation, water, animal welfare
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and human rights concerns, and other risks associated with the global food system may lead to increased activism focusing on
food companies and their suppliers, governmental intervention and consumer responses. These risks could adversely affect
our or our suppliers’ reputations and businesses and our ability to procure the materials we need to operate our business.
As a company whose products comprise staple food and feed products sold globally, as well as ingredients included in
trusted food brands of our customers, maintaining a good corporate reputation is critical to our continued success.
Reputational value is based in large part on perceptions, which can shift rapidly in response to negative incidents. The failure
or alleged failure to maintain high standards for quality, safety, integrity, environmental sustainability and social
responsibility, including with respect to raw materials and services obtained from suppliers, even if untrue, may result in
tangible effects, such as reduced demand for our products, disruptions to our operations, increased costs and a loss of market
share to competitors. Our reputation and results of operations could also be adversely impacted by changing consumer
preferences and perceptions relating to some of the products we sell, such as with regard to the quantity and type of fats,
sugars and grains consumed, as well as concerns regarding genetically modified crops. Failure to anticipate, adapt or respond
effectively to these trends or issues may result in material adverse effects on our business, financial condition, and results of
operations.
We are subject to numerous laws and regulations globally, which could adversely affect our operating results.
Due to our global business operations, we are required to comply with numerous laws and regulations in the countries in
which we operate. These include general business regulations, such as with respect to taxes, accounting, anti-corruption and
fair competition, trade sanctions, product safety, and environmental matters, as well as those governing the manufacturing,
production, handling, storage, transport, marketing and sale of our products. These include laws and regulations relating to
facility licensing and permitting, food and feed safety, the handling and production of regulated substances, nutritional and
labeling requirements, global trade compliance and other matters. Our operations and those of our suppliers are also subject to
restrictions on land use in certain protected areas, forestry reserve requirements, and limitations on water use. In addition to
liabilities arising out of our current and future operations for which we have ongoing processes to manage compliance with
regulatory obligations, we may be subject to environmental liabilities for past operations at current facilities and in some cases
to liabilities for past operations at facilities that we no longer own or operate. We may also be subject to liabilities for
operations of acquired companies. Our industrial activities can also result in serious accidents that could result in personal
injuries, facility shutdowns, reputational harm to our business and/or the expenditure of significant amounts to remediate
safety issues or repair damaged facilities. We may incur material costs or liabilities to comply with environmental, health and
safety requirements. Any failure to comply with applicable laws and regulations may subject us to substantial fines,
administrative sanctions, criminal penalties, revocations of operating permits and/or shutdowns of our facilities, litigation, and
other liabilities, as well as damage to our reputation.
Due to the international scope of our operations, we are subject to a complex system of import- and export-related laws
and regulations, including U.S. regulations issued by Customs and Border Protection, the Bureau of Industry and Security, the
Office of Antiboycott Compliance, the Directorate of Defense Trade Controls and Office of Foreign Assets Control, as well as
the counterparts of these agencies in other countries. Any alleged or actual violations may subject us to government scrutiny,
investigation and civil and criminal penalties, and may limit our ability to import or export our products, or to provide services
outside the United States. Furthermore, embargoes and sanctions imposed by the United States and other governments
restricting or prohibiting sales to specific persons or countries or based on product classification may expose us to potential
criminal or civil sanctions. We cannot predict the nature, scope or effect of future regulatory requirements to which our
operations might be subject or in certain locations the manner in which existing laws might be administered or interpreted.
In addition, continued government and public emphasis in countries in which we operate on environmental issues,
including climate change, conservation and natural resource management, have resulted in and could result in new or more
stringent forms of regulatory oversight or other limitations on the agricultural industry, including increased environmental
controls, land-use restrictions affecting us or our suppliers and other conditions that could have a material adverse effect on
our business, reputation, financial condition and results of operations. For example, certain aspects of our business and the
larger food production chain generate carbon emissions. A number of jurisdictions in which we operate have implemented or
are in the process of implementing carbon pricing programs or regulations to reduce greenhouse gas emissions including, but
not limited to, the United States, Canada, Mexico, the European Union and its member states, and China. For example, the
Biden Administration has issued a series of executive orders and regulatory initiatives focused on climate change, including
rejoining the Paris Climate Agreement, pursuant to which the Administration has announced a goal of halving U.S. greenhouse
gas emissions by 2030. The imposition of regulatory restrictions on greenhouse gas emissions in many markets in which we
operate, which may include limitations on greenhouse gas emissions, national emission reduction plans, requirements to make
additional investments to modify our facilities, equipment and processes, other restrictions on industrial operations, taxes or
fees on greenhouse gas emissions, and other measures, could affect land-use decisions, the cost of agricultural production and
the cost and means of processing and transporting our products, which could adversely affect our business, cash flows and
results of operations.
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We are exposed to credit and counterparty risk relating to our customer and supplier counterparties in the ordinary course
of business. In particular, we advance capital and provide other financing arrangements to farmers in Brazil and, as a
result, our business and financial results may be adversely affected if these farmers are unable to repay the capital advanced
to them.
We have various credit terms with customers, and our customers have varying degrees of creditworthiness, which
exposes us to the risk of non-payment or other default under our contracts and other arrangements with them. In the event that
we experience significant defaults on their payment obligations to us, our financial condition, results of operations or cash flows
could be materially and adversely affected.
In Brazil, where there have been limited third-party financing sources available to farmers, we provide financing to
farmers from whom we purchase soybeans and other agricultural commodities through prepaid commodity purchase contracts
and advances, which are generally intended to be short-term in nature and are typically secured by the farmer's crop and a
mortgage on the farmer's land and other assets to provide a means of repayment in the potential event of crop failure or
shortfall. As of December 31, 2021 and 2020, respectively, we had approximately $594 million and $592 million in outstanding
prepaid commodity purchase contracts and advances to farmers. We are exposed to the risk that the underlying crop will be
insufficient to satisfy a farmer's obligation under the financing arrangements as a result of weather and crop growing conditions,
and other factors that influence the price, supply and demand for agricultural commodities. In addition, any collateral held by us
as part of these financing transactions may not be sufficient to fully protect us from loss.
We are a capital intensive business and depend on cash provided by our operations as well as access to external financing
to operate and grow our business.
We require significant amounts of capital to operate our business and fund capital expenditures. Our working capital
needs are directly affected by the prices of agricultural commodities, with increases in commodity prices generally causing
increases in our borrowing levels. We are also required to make substantial capital expenditures to maintain, upgrade and
expand our extensive network of storage facilities, processing plants, refineries, mills, logistics assets and other facilities to
keep pace with competitive developments, technological advances and safety and environmental standards. Furthermore, the
expansion of our business and pursuit of acquisitions or other business opportunities may require us to have access to
significant amounts of capital. If we are unable to generate sufficient cash flows or raise sufficient external financing on
attractive terms to fund these activities, including as a result of a tightening in the global credit markets, we may be forced to
limit our operations and growth plans, which may adversely impact our competitiveness and, therefore, our results of
operations.
As of December 31, 2021, we had $5,815 million of aggregate unused committed borrowing capacity under our
commercial paper program and various revolving bilateral and syndicated credit facilities and $5,964 million in total debt. Our
debt levels could limit our ability to obtain additional financing, limit our flexibility in planning for, or reacting to, changes in
the markets in which we compete, place us at a competitive disadvantage compared to our competitors that are less leveraged
than we are, and require us to dedicate more cash on a relative basis to servicing our debt and less to developing our business.
This may limit our ability to run our business and use our resources in the manner in which we would like. Furthermore,
difficult conditions in global credit or financial markets generally could adversely impact our ability to refinance maturing debt
or the cost or other terms of such refinancing, as well as adversely affect the financial position of the lenders with whom we do
business, which may reduce our ability to obtain financing for our operations. See "Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources." Moreover, the COVID-19
pandemic has increased volatility and pricing in the capital markets, and we may not have access to preferred sources of
liquidity when needed or on terms we find acceptable, and our borrowing costs could increase.
Access to credit markets and pricing of company debt is also dependent on maintaining appropriate credit ratings, and
one of our financial objectives has been to maintain an investment grade credit rating. While our debt agreements do not have
any credit rating downgrade triggers that would accelerate the maturity of our debt, reductions in our credit ratings would
increase our borrowing costs and, depending on their severity, could impede our ability to obtain credit facilities or access the
capital markets in the future on favorable terms, as well as impair our ability to compete effectively relative to competitors
with higher credit ratings.
In addition, some of our credit facilities, interest rate derivatives and commercial agreements use LIBOR (London Inter-
Bank Offered Rate) as the benchmark rate. LIBOR has recently been the subject of international reform proposals such that
most LIBOR settings were discontinued at the end of 2021 with only certain U.S. dollar LIBOR settings continuing through
mid-2023, at which point they will also be discontinued. In the United States, the Alternative Reference Rates Committee has
proposed the Secured Overnight Financing Rate (SOFR) as an alternative rate for use in contracts that are currently indexed to
U.S. dollar LIBOR. There are significant differences between LIBOR and SOFR, such as LIBOR being an unsecured lending
rate while SOFR is a secured lending rate, and SOFR is an overnight rate while LIBOR reflects term rates at different
maturities. We have identified our contractual arrangements that will be impacted by the cessation of the remaining U.S. dollar
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LIBOR settings. To prepare for this change, we are actively working with counterparties to incorporate fallback language in
negotiated contracts, in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new
contracts. The evaluation and modification of contracts is ongoing. As such, as our LIBOR-based borrowings are converted to
SOFR, the differences between LIBOR and SOFR, plus the recommended spread adjustment, could result in interest costs that
are higher than if LIBOR remained available, which could have a material adverse effect on our operating results. At this time,
it is not possible to predict the effect that these developments, any discontinuance, modification or other reforms to LIBOR, or
the establishment of alternative reference rates such as SOFR, may have on LIBOR, other benchmark rates or floating rate debt
instruments.
Our risk management strategies may not be effective.
Our business is affected by fluctuations in agricultural commodity prices, transportation costs, energy prices, interest
rates, and foreign currency exchange rates. We engage in hedging transactions to manage these risks. However, our exposures
may not always be fully hedged, and our hedging strategies may not be successful in minimizing our exposure to these
fluctuations. In addition, our risk management strategies may seek to position our overall portfolio relative to expected market
movements. While we have implemented a broad range of risk monitoring and control procedures and policies to mitigate
potential losses, they may not in all cases be successful in anticipating a significant risk exposure and protecting us from
losses that have the potential to impair our financial position. See "Item 7A. Quantitative and Qualitative Disclosures About
Market Risk"
The loss of, or a disruption in, our manufacturing and distribution operations or other operations and systems could
adversely affect our business.
We are engaged in manufacturing and distribution activities on a global scale, and our business depends on our ability to
execute and monitor, on a daily basis, a significant number of transactions across numerous markets or geographies. As a result,
we are subject to the risks inherent in such activities, including industrial accidents, environmental events, fires, explosions,
strikes and other labor or industrial disputes, and disruptions in logistics or information systems, as well as natural disasters,
pandemics (including the COVID-19 pandemic), acts of terrorism and other external factors over which we have no control.
While we insure ourselves against many of these types of risks in accordance with industry standards, our level of insurance
may not cover all losses. The potential effects of these conditions could have a material adverse effect on our business, results
of operations and financial condition.
Our information technology systems, processes and sites may suffer interruptions, security breaches or failures that may
adversely affect our ability to conduct our business.
We rely on certain key information technology systems, some of which are dependent on services provided by third
parties, to provide critical data and services for internal and external users, including procurement and inventory management,
transaction processing, financial, commercial and operational data, human resources management, legal and tax compliance,
and other information and processes necessary to operate and manage our business. If our third-party service providers do not
respond or perform effectively in connection with a cyber breach or system failure, our business may be impacted.
Increased social engineering threats and more sophisticated computer crime, including advanced persistent threats and
zero-day vulnerability exploits, pose a potential risk to the security of our information technology systems, networks and
services and we may incur significant costs in protecting against potential security breaches, cyber-based attacks or other cyber
incidents. Our information technology and infrastructure may experience attacks by hackers, breaches or other failures or
disruptions that could compromise our systems and the information stored there. Such risks increase while some of our
workforce in certain countries in which we operate continues to work from home due to the COVID-19 pandemic. In addition,
new technology that could result in greater operational efficiency may further expose our computer systems to the risk of cyber-
attacks.
We have implemented security policies, training programs, measures and disaster recovery plans designed to prevent,
detect and mitigate cyber-based attacks, and to protect the security and continuity of our networks and critical systems. We use
encryption and authentication technologies designed to secure the transmission and storage of data and prevent access to
Company and user data or accounts. In addition, we also conduct tests and assessments using independent third parties on a
regular basis. These measures may not adequately prevent adverse events such as breaches or failures from occurring, or
mitigate their severity if they do occur.
If our information technology systems are breached, damaged or fail to function properly due to any number of causes,
such as security breaches or cyber-based attacks, systems implementation difficulties, catastrophic events or power outages, and
our security, contingency disaster recovery, or other risk mitigation plans do not effectively mitigate these occurrences on a
timely basis, we may experience a material disruption in our ability to manage our business operations and produce financial
reports, as well as significant costs and lost business opportunities until they are remediated.
We are also subject to a variety of laws and regulations regarding data privacy, data protection, and data security,
including laws related to the collection, storage, handling, use, disclosure, transfer and security of personal information. Data
privacy regulations continue to evolve, and non-compliance with such regulations could subject the Company to legal claims or
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2021 Bunge Annual Report
proceedings, potential regulatory fines and penalties and damage to our reputation. These factors may adversely impact our
business, results of operations and financial condition, as well as our competitive position.
Changes in tax laws or exposure to additional tax liabilities could have a material impact on our financial
condition and results of operations.
We are subject to income taxes as well as non-income taxes in various jurisdictions throughout the world. Tax
authorities may disagree with certain positions we have taken and assess additional taxes, along with interest and penalties.
We regularly assess the likely outcomes of these audits and assessments in order to assess the appropriateness of our tax
assets and liabilities. However, the calculation of such liabilities involves significant judgment in the interpretation of
complex tax regulations in many jurisdictions. Therefore, any dispute with a taxing authority may result in a payment or
outcome that is significantly different from current estimates. There can be no assurance that we will accurately predict the
outcomes of these audits and the actual outcomes of these audits could have a material impact on our consolidated earnings
and financial condition in the periods in which they are recognized.
Additionally, changes in tax laws could materially impact our effective tax rate and the monetization of recoverable tax
assets (indirect tax credits). Furthermore, the ongoing efforts in corporate tax transparency by the Organization of Economic
Cooperation and Development ("OECD") and a number of countries has resulted in additional mandatory disclosures, which
will likely cause additional scrutiny of the Company's tax positions and potentially increased tax assessments.
Our operations are dependent on a wide array of third parties.
The success of our supply chain relies on the continued performance of a wide array of third parties. Suppliers,
vendors, co-manufacturers, third-party outsourcers, warehousing partners, and transportation providers are among our critical
business partners. Although we take steps to qualify and audit third parties with whom we do business, we cannot guarantee
that all third parties will perform dependably or at all. It is possible that events beyond our control, such as financial issues,
operational failures, labor issues, cybersecurity events, pandemics or other health issues, such as COVID-19, or other systemic
issues could impact our unaffiliated third parties. If our third parties fail to deliver on their commitments, introduce unplanned
risk to our operations, such as exposing us to cybersecurity-related compromises, or are unable to fulfill their obligations, we
could experience manufacturing challenges, shipment delays, increased costs, or lost revenue.
We are dependent on our executive management and other key personnel.
Our success depends on our executive management team and other key personnel with skills upon which our business
depends, and our ability to effectively identify, attract, retain and motivate high quality employees, and replace those who retire
or resign. We believe that we have an experienced and highly qualified executive management team and the loss of service of
any one or more of these key personnel could have a significant adverse impact on our operations and our future profitability.
Failure to retain and motivate our executive management team and to hire, retain and develop other important personnel could
generally impact other levels of our management and operations, as well as our ability to execute our strategies and may
adversely affect our business and results of operations.
Risks Relating to Our Common Shares
We are a Bermuda company, and it may be difficult to enforce judgments against us and our directors and executive
officers.
We are a Bermuda exempted company. As a result, the rights of holders of our common shares will be governed by
Bermuda law and our memorandum of association and bylaws. The rights of shareholders under Bermuda law may differ from
the rights of shareholders of companies or corporations incorporated in other jurisdictions, including the United States. Several
of our directors and some of our officers are non-residents of the United States, and a substantial portion of our assets and the
assets of those directors and officers are located outside the United States. As a result, it may be difficult to effect service of
process on those persons in the United States or to enforce in the United States judgments obtained in U.S. courts against us or
those persons based on civil liability provisions of the U.S. securities laws. It is doubtful whether courts in Bermuda will
enforce judgments obtained in other jurisdictions, including the United States, against us or our directors or officers under the
securities laws of those jurisdictions or entertain actions in Bermuda against us or our directors or officers under the securities
laws of other jurisdictions.
Our bylaws restrict shareholders from bringing legal action against our officers and directors.
Our bylaws contain a broad waiver by our shareholders of any claim or right of action, both individually and on our
behalf, against any of our officers or directors. The waiver applies to any action taken by an officer or director, or the failure of
an officer or director to take any action, in the performance of his or her duties, except with respect to any matter involving any
fraud or dishonesty on the part of the officer or director. This waiver limits the right of shareholders to assert claims against our
officers and directors unless the act, or failure to act, involves fraud or dishonesty.
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2021 Bunge Annual Report
We have anti-takeover provisions in our bylaws that may discourage a change of control.
Our bylaws contain provisions that could make it more difficult for a third party to acquire us without the consent of our
Board of Directors. These provisions provide for:
•
•
•
•
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 then in issue entitling the holder to attend and vote on the resolution;
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 certain business combination transactions, which have not been approved by our Board of
Directors.
These provisions, as well as any additional anti-takeover measures our Board of Directors could adopt in the future, could make
it more difficult for a third party to acquire us, even if the third party's offer may be considered beneficial by many
shareholders. As a result, shareholders may be limited in their ability to obtain a premium for their shares.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
The following tables provide information on our principal operating facilities as of December 31, 2021.
Facilities by Business Area
(metric tons)
Business Area
Agribusiness
Refined and Specialty Oils
Milling (1)
Facilities by Geographic Region
(metric tons)
Region
North America (1)
South America
Europe
Asia-Pacific
Aggregate
Daily
Production
Capacity
Aggregate
Storage
Capacity
163,908
71,226
27,897
14,571,829
836,646
1,325,127
Aggregate
Daily
Production
Capacity
Aggregate
Storage
Capacity
80,128
80,041
63,659
39,203
3,129,090
10,041,841
2,509,532
1,053,139
(1) Includes production and storage capacities of the assets associated with our Mexico wheat milling business included in
assets held for sale at December 31, 2021. See Note 2- Acquisitions and Dispositions to our consolidated financial
statements included as part of this Annual Report on Form 10-K for more information.
Agribusiness
In our Agribusiness segment, we have 115 commodity storage facilities globally, which are located close to agricultural
production areas or export locations. We also have 52 oilseed processing plants globally and operate three fertilizer processing
and blending plants in Argentina. We have 36 merchandising, distribution, and administrative offices throughout the world.
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2021 Bunge Annual Report
Refined and Specialty Oils
In our Refined and Specialty Oils business, we have 69 refining and packaging facilities throughout the world. We also
have 88 storage facilities globally that are located close to food and ingredient locations. In addition, to facilitate distribution in
Brazil, we operate five distribution centers.
Milling
In our Milling business, we have 23 milling facilities throughout the world. We also have 9 storage facilities globally that
are located close to milling facility locations.
Other
Our corporate headquarters co-located with our North American operations in Chesterfield, Missouri, occupies
approximately 150,000 square feet of space under a lease that expires in December 2022. We also own or lease other office
space for our operations worldwide.
We believe that our facilities are adequate to address our operational requirements.
Item 3. Legal Proceedings
We are subject to various legal proceedings and risks globally in the course of our business, including claims, suits, and
government investigations or proceedings involving competition, tax, labor and employment, environmental, commercial
disputes, and other matters. Although we cannot accurately predict the amount of any liability that may ultimately arise with
respect to any of these matters, we make provisions for potential liabilities when we deem them probable and reasonably
estimable. These provisions are based on current information and legal advice and are adjusted from time to time according to
developments. We do not expect the outcome of these proceedings, net of established reserves, to have a material adverse effect
on our financial condition or results of operations. However, due to their inherent uncertainty, there can be no assurance as to
the ultimate outcome of current or future litigation, proceedings, investigations or claims and it is possible that a resolution of
one or more such proceedings could result in judgments, awards, fines and penalties that could adversely affect our business,
consolidated financial position, results of operations, or cash flows in a particular period.
For a discussion of certain legal and tax matters relating to Argentina and Brazil, see Note 14- Income Taxes and Note 21-
Commitments and Contingencies to our consolidated financial statements included as part of this Annual Report on Form 10-K.
Item 4. Mine Safety Disclosures
Not applicable.
PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
(a) Market Information
Our common shares trade on the New York Stock Exchange under the ticker symbol "BG".
(b) Approximate Number of Holders of Common Stock
To our knowledge, based on information provided by Computershare Investor Services LLC, our transfer agent, as of
December 31, 2021, we had 141,057,414 common shares issued and outstanding, which were held by approximately 70
registered holders.
(c) Dividends
We have historically paid and expect to continue to pay cash dividends to holders of our common shares on a quarterly
basis. In addition, holders of our 4.875% cumulative convertible perpetual preference shares are entitled to annual dividends per
share in the amount of $4.875 per year payable quarterly, if, as and when declared by the Board of Directors in accordance with
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2021 Bunge Annual Report
the terms of those shares. Any future determination to pay dividends will, subject to the provisions of Bermuda law, be at the
discretion of our Board of Directors and will depend upon then existing conditions, including our financial condition, results of
operations, contractual and other relevant legal or regulatory restrictions, capital requirements, business prospects and other
factors our Board of Directors deems relevant.
Under Bermuda law, a company may not declare or pay dividends from time to time if there are reasonable grounds for
believing that the company is, or would after the payment be, unable to pay its liabilities as they become due or that the
realizable value of its assets would thereby be less than its liabilities. Under our bylaws, each common share is entitled to
dividends if, as and when dividends are declared by our Board of Directors, subject to any preferred dividend right of the
holders of any preference shares. Bermuda has exchange controls which apply to residents in respect of the Bermuda dollar. As
an exempted company, Bunge is designated as non-resident for Bermuda exchange control purposes by the Bermuda Monetary
Authority. Pursuant to our non-resident status, there are no Bermuda restrictions on our ability to transfer funds (other than
funds denominated in Bermuda dollars) in and out of Bermuda or to pay dividends to non-residents who are holders of our
common shares in all other currencies, including currency of the United States.
Under current Bermuda law, there is no Bermuda withholding or other tax on dividends or other distributions, nor any
Bermuda tax computed on profit or income payable by Bunge or its operations. Furthermore, no Bermuda tax is levied on the
sale or transfer (including by gift and/or on the death of the shareholder) of Bunge common shares (other than by shareholders
resident in Bermuda).
We paid quarterly dividends on our common shares of $0.525 per share in the third and fourth quarters of 2021, and
$0.50 per share in the first and second quarters of 2021. We paid quarterly dividends of $0.50 per common share in each of the
four quarters of 2020. On November 3, 2021, we declared a regular quarterly cash dividend of $0.525 per common share
payable on March 2, 2022 to shareholders of record on February 16, 2022.
(d) Securities Authorized for Issuance Under Equity Compensation Plans
The following table sets forth certain information, as of December 31, 2021, with respect to our equity compensation
plans.
(a)
(b)
(c)
Number of Securities
to be Issued Upon
Exercise of Outstanding
Options, Warrants
and Rights
Weighted-Average
Exercise Price Per
Share of Outstanding
Options, Warrants
and Rights
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
5,254,625 (2)
$
62.28 (3)
4,726,179 (4)
Plan category
Equity compensation plans approved
by shareholders(1)
(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 3,146,095 common shares, performance-based restricted stock
unit awards as to 1,012,353 common shares, and 1,096,177 unvested and time-based 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 awards, 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 10,900,000, subject to adjustment in accordance with the terms of the plan. Our 2017 Non-
Employee Directors' Equity Incentive Plan provides that the maximum number of common shares issuable under the
plan may not exceed 320,000, 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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2021 Bunge Annual Report
(e) Performance Graph
The performance graph shown below compares the quarterly change in cumulative total shareholder return on our
common shares with the Standard & Poor's (S&P) 500 Stock Index and the S&P Food Products Index from December 31, 2016
through the quarter ended December 31, 2021. The graph sets the beginning value of our common shares and the indices at
$100 and assumes that all dividends are reinvested. All index values are weighted by the capitalization of the companies
included in the index.
Note: Prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved. Copyright 1980-2022.
Note: Index Data: Copyright Standard and Poor's, Inc. Used with permission. All rights reserved.
Purchases of Equity Securities by Registrant and Affiliated Purchasers
In May 2015, we established a program for the repurchase of up to $500 million of our issued and outstanding common
shares. Bunge repurchased 1,298,384 common shares during the year ended December 31, 2021 for $100 million. Total
repurchases under the program from its inception in May 2015 through December 31, 2021 were 8,551,824 shares for $500
million, thereby completing the program. There were no repurchases under this program in the quarter ended December 31,
2021.
In October 2021, our Board of Directors approved a new program for the repurchase of up to $500 million of our issued
and outstanding common shares. The program has no expiration date, and there have been no repurchases under this program as
of December 31, 2021.
Any repurchases may be made from time to time through a variety of means, including in the open market, in privately
negotiated transactions or through other means as determined by us, and in compliance with applicable legal requirements. The
timing and number of any shares repurchased will depend on a variety of factors, including share price and market conditions,
and the program may be suspended or discontinued at any time at our discretion.
Item 6. [Reserved]
26
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following should be read in conjunction with "Cautionary Statement Regarding Forward Looking Statements" and our
combined consolidated financial statements and notes thereto included in Item 15 of this Annual Report on Form 10-K.
2021 Bunge Annual Report
Operating Results
Factors Affecting Operating Results
Bunge Limited, a Bermuda company, together with its subsidiaries, is a leading global agribusiness and food company
with integrated operations that stretch from farmer to consumer. The commodity nature of the Company's principal products, as
well as regional and global supply and demand variations that occur as an inherent part of the business, make volumes an
important operating measure. Accordingly, information is included in "Segment Results" that summarizes certain items in our
consolidated statements of income and volumes by reportable segment. The common unit of measure for all reported volumes
is metric tons. A description of reported volumes for each reportable segment has also been included in the discussion of key
factors affecting results of operations in each of our business segments as discussed below.
Agribusiness
In the Agribusiness segment, we purchase, store, transport, process and sell agricultural commodities and commodity
products. Profitability in this segment is affected by the availability and market prices of agricultural commodities and
processed commodity products and the availability and costs of energy, transportation, and logistics services. Profitability in
our processing operations is also impacted by volumes procured, processed and sold and by capacity utilization rates.
Availability of agricultural commodities is affected by many factors, including weather, farmer planting and selling decisions,
plant diseases, governmental policies, and agricultural sector economic conditions. Reported volumes in this segment primarily
reflect (i) grains and oilseeds originated from farmers, cooperatives or other aggregators and from which "origination margins"
are earned; (ii) oilseeds processed in our oilseed processing facilities and from which "crushing margins" are earned,
representing the margin from the industrial separation of the oilseed into its protein meal and vegetable oil components, both of
which are separate commodity products; and (iii) third party sales of grains, oilseeds and related commodity products
merchandised through our distribution businesses and from which "distribution margins" are earned. The foregoing subsegment
volumes may overlap as they produce separate margin capture opportunities. For example, oilseeds procured in our South
American grain origination activities may be processed in our oilseed processing facilities in Asia-Pacific and will be reflected
at both points within the segment. As such, these reported volumes do not represent solely volumes of net sales to third-parties,
but rather where margin is earned, appropriately reflecting their contribution to our global network's capacity utilization and
profitability.
Demand for our purchased and processed Agribusiness products is affected by many factors, including global and
regional economic conditions, changes in per capita income, the financial condition of customers and customer access to credit,
worldwide consumption of food products, particularly pork and poultry, population growth rates, relative prices of substitute
agricultural products, outbreaks of disease associated with livestock and poultry, and demand for renewable fuels produced
from agricultural commodities and commodity products.
We expect that the factors described above will continue to affect global supply and demand for our Agribusiness
products for the foreseeable future. We also expect that, from time to time, imbalances will likely exist between oilseed
processing capacity and demand for oilseed products in certain regions, which impacts our decisions regarding whether, when
and where to purchase, store, transport, process or sell these commodities, including whether to change the location of or adjust
our own oilseed processing capacity.
Additionally, price fluctuations and availability of commodities may cause fluctuations in our working capital, such as
inventories, accounts receivable and borrowings over the course of a given year. For example, increased availability of
commodities at harvest times often causes fluctuations in our inventories and borrowings. Increases in agricultural commodity
prices will also generally cause our cash flow requirements to increase as our operations require increased use of cash to acquire
inventories and fund daily settlement requirements on exchange-traded futures that we use to hedge our physical inventories.
Refined and Specialty Oils
In the Refined and Specialty Oils segment, our operating results are affected by changes in the prices of raw materials such
as crude vegetable oils, the mix of products that we sell, changes in consumer eating habits, changes in per capita income,
consumer purchasing power levels, availability of credit to customers, governmental dietary guidelines and policies, changes in
regional economic conditions and the general competitive environment in our markets. Raw material inputs to our production
processes in the Refined and Specialty Oils segment are largely sourced at market prices from our Agribusiness segment.
Reported volumes in this segment reflect third-party sales of our finished products and, as such, include the sales of products
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2021 Bunge Annual Report
derived from raw materials sourced from the Agribusiness segment as well as from third-parties. The unit of measure for these
volumes is metric tons as these businesses are linked to the commodity raw materials, which are their primary inputs.
Milling
In the Milling segment, our operating results are affected by changes in the prices of raw materials such as grains, the
mix of products that we sell, changes in consumer eating habits, changes in per capita income, consumer purchasing power
levels, availability of credit to customers, governmental dietary guidelines and policies, changes in regional economic
conditions and the general competitive environment in our markets. Raw material inputs to our production processes in the
Milling segment are largely sourced at market prices from our Agribusiness segment. Reported volumes in these segments
reflect third-party sales of our finished products and, as such, include the sales of products derived from raw materials sourced
from the Agribusiness segment as well as from third-parties. The unit of measure for these volumes is metric tons as these
businesses are linked to the commodity raw materials, which are their primary inputs.
Sugar and Bioenergy
Our Sugar and Bioenergy segment primarily comprises our 50% interest in BP Bunge Bioenergia, the joint venture
formed in December 2019 by the combination of our Brazilian sugar and bioenergy operations with the Brazilian biofuels
business of BP. Until December 2019, our Brazilian sugar and bioenergy operations formed the majority of our Sugar and
Bioenergy segment through which we produced and sold sugar and ethanol derived from sugarcane, as well as energy derived
from the sugar and ethanol production process. BP Bunge Bioenergia operates on a stand-alone basis with a total of 11 mills
located across the Southeast, North and Midwest regions of Brazil. Following the joint venture's formation we no longer
consolidate our Brazilian sugar and bioenergy operations in our consolidated financial statements and instead account for our
interest in the joint venture under the equity method of accounting. Accordingly, our reported Sugar and Bioenergy results for
2021 and 2020 include our share of the net earnings in BP Bunge Bioenergia, whereas our Sugar and Bioenergy results for 2019
reflect our former 100% ownership interest in the Brazilian sugar and bioenergy operations contributed to the joint venture.
Although we are committed to supporting the growth and development of BP Bunge Bioenergia, our long-term goal is to seek
strategic opportunities for our investment in the joint venture.
Profitability in this segment is affected by the profitability of the joint venture and, therefore the value of our
investment and the amount and timing of distributions we receive, if any. In turn, the profitability of the joint venture is affected
by the availability and quality of sugarcane, which impacts capacity utilization rates and the amount of sugar that can be
extracted from the sugarcane, and by market prices of sugar and ethanol. The availability and quality of sugarcane is affected by
many factors, including weather, geographical factors such as soil quality and topography, and agricultural practices. Once
planted, sugarcane may be harvested for several continuous years, but the yield decreases with each subsequent harvest. As a
result, the current optimum economic cycle is generally five to seven consecutive harvests, depending on location. The joint
venture owns and/or has partnership agreements to manage farmland on which it grows and harvests sugarcane and also
purchases sugarcane from third parties. Prices of sugarcane in Brazil are established by Consecana, the state of São Paulo
sugarcane, sugar and ethanol council, and are based on the sucrose content of the cane and the market prices of sugar and
ethanol. Demand for the joint venture's products is affected by such factors as changes in global or regional economic
conditions, the financial condition of customers and customer access to credit, worldwide consumption of food products,
population growth rates, changes in per capita income and demand for and governmental support of renewable fuels produced
from agricultural commodities, including sugarcane.
In addition to these industry related factors which impact our business areas, our results of operations in all business
areas and segments are affected by the following factors:
Foreign Currency Exchange Rates
Due to the global nature of our operations, our operating results can be materially impacted by foreign currency
exchange rates. Both translation of our foreign subsidiaries' financial statements and foreign currency transactions can affect
our results. On a monthly basis, for subsidiaries whose functional currency is a currency other than the U.S. dollar, subsidiary
statements of income and cash flows must be translated into U.S. dollars for consolidation purposes based on weighted-average
exchange rates in each monthly period. As a result, fluctuations of local currencies compared to the U.S. dollar during each
monthly period impact our consolidated statements of income and cash flows for each reported period (per quarter and year-to-
date) and also affect comparisons between those reported periods. Subsidiary balance sheets are translated using exchange rates
as of the balance sheet date with the resulting translation adjustments reported in our consolidated balance sheets as a
component of Accumulated other comprehensive loss.
Additionally, we record transaction gains or losses on monetary assets and liabilities that are not denominated in the
functional currency of the entity. These amounts are remeasured into their respective functional currencies at exchange rates as
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2021 Bunge Annual Report
of the balance sheet date, with the resulting gains or losses included in the entity's statement of income and, therefore, in our
consolidated statements of income as Foreign exchange gains (losses) - net.
We primarily use a combination of equity and intercompany loans to finance our subsidiaries. Intercompany loans that
are of a long-term investment nature with no intention of repayment in the foreseeable future are considered permanently
invested and as such are treated as analogous to equity for accounting purposes. As a result, any foreign currency translation
gains or losses on such permanently invested intercompany loans are reported in Accumulated other comprehensive loss in our
consolidated balance sheets. In contrast, foreign currency translation gains or losses on intercompany loans that are not of a
permanent nature are recorded in our consolidated statements of income as Foreign exchange gains (losses) - net.
Income Taxes
As a Bermuda exempted company, we are not subject to income taxes in our jurisdiction of incorporation. However,
our subsidiaries, which operate in multiple tax jurisdictions, are subject to income taxes at various statutory rates ranging from
0% to 35%. The jurisdictions that significantly impact our effective tax rate are Brazil, the United States, Argentina,
Switzerland and Bermuda. Determination of taxable income requires the interpretation of related and often complex tax laws
and regulations in each jurisdiction in which we operate, and the use of estimates and assumptions regarding future events.
Non-U.S. GAAP Financial Measures
Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge’s
management to evaluate segment operating activities. Bunge also uses Core Segment EBIT, Non-core Segment EBIT and Total
Segment EBIT to evaluate the operating performance of Bunge’s Core reportable segments, Non-core reportable segments, and
total reportable segments together with Corporate and Other. Core Segment EBIT is the aggregate of the EBIT of each of
Bunge’s Agribusiness, Refined and Specialty Oils, and Milling segments. Non-core Segment EBIT is the EBIT of Bunge’s
Sugar & Bioenergy segment. Total Segment EBIT is the aggregate of the EBIT of Bunge’s Core and Non-core reportable
segments, together with Corporate and Other. Bunge’s management believes Core Segment EBIT, Non-core Segment EBIT and
Total Segment EBIT are useful measures of operating profitability since the measures allow for an evaluation of the
performance of its segments without regard to financing methods or capital structure. In addition, EBIT is a financial measure
that is widely used by analysts and investors in Bunge’s industry. Total Segment EBIT is a non-U.S. GAAP financial measure
and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial
measure. Further, Total Segment EBIT excludes EBIT attributable to noncontrolling interests and is not a measure of
consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any
other measure of consolidated operating results under U.S. GAAP. See the reconciliation of Net income (loss) attributable to
Bunge to Total Segment EBIT below.
Cash provided by (used for) operating activities, adjusted is calculated by including the Net proceeds from beneficial
interests in securitized trade receivables with Cash provided by (used for) operating activities. Cash provided by (used for)
operating activities, adjusted is a non-GAAP financial measure and is not intended to replace Cash provided by (used for)
operating activities, the most directly comparable U.S. GAAP financial measure. Our management believes presentation of this
measure allows investors to view our cash generating performance using the same measure that management uses in evaluating
financial and business performance and trends.
2021 Overview
Net Income (Loss) Attributable to Bunge - For the year ended December 31, 2021, Net income attributable to Bunge
was $2,078 million, an increase of $933 million compared to a Net income attributable to Bunge of $1,145 million for the year
ended December 31, 2020. The increase was due to higher Segment EBIT in our Core and Non-core segments, as further
discussed in the Segment Overview and Results of Operations section below.
Earnings Per Common Share - Diluted - For the year ended December 31, 2021, Net income attributable to Bunge
common shareholders, diluted, was $13.64 per share, an increase of $5.93 per share, compared to $7.71 per share for the year
ended December 31, 2020.
EBIT - For the year ended December 31, 2021, Total Segment EBIT was $2,661 million, an increase of $1,028 million
compared to EBIT of $1,633 million for the year ended December 31, 2020. The increase in Total Segment EBIT for the year
ended December 31, 2021 was due to higher Segment EBIT in our Core and Non-core segments, as further discussed in the
Segment Overview and Results of Operations section below, and which also provides a reconciliation of Net income (loss)
attributable to Bunge to Total Segment EBIT.
Income Tax (Expense) Benefit - Income tax expense was $398 million for the year ended December 31, 2021
compared to income tax expense of $248 million for the year ended December 31, 2020. The increase in income tax expense
29
2021 Bunge Annual Report
for the year ended December 31, 2021 was primarily due to higher pretax income, resulting from higher EBIT in our Core and
Non-core segments, as noted above.
Liquidity and Capital Resources – At December 31, 2021, working capital, which equals total current assets less total
current liabilities, was $7,136 million, an increase of $1,940 million, compared to working capital of $5,196 million at
December 31, 2020. The increase in working capital is primarily due to higher commodity prices, including related increases in
readily marketable inventories ("RMI") purchases, and lower short-term debt levels driven by a $1 billion long-term bond
issuance in the second quarter of 2021 (see Note 18- Long-term Debt, to our consolidated financial statements), from which a
portion of the proceeds were used to pay down short-term debt.
Segment Overview and Results of Operations
Effective January 1, 2021, we changed our reporting segments to align with our new value chain operational structure,
as discussed in Note 28- Segment Information to our consolidated financial statements. Certain reclassifications of prior period
amounts within the reporting segments have been made to conform to current presentation.
Our operations are now organized, managed and classified into four reportable segments, organized based upon their
similar economic characteristics, nature of products and services offered, production processes, types and classes of customer,
and distribution methods. We further organize these reportable segments into Core operations and Non-core operations. Core
operations comprise our Agribusiness, Refined and Specialty Oils, and Milling segments. Non-core operations comprise our
Sugar & Bioenergy segment, which itself primarily comprises our 50% interest in the net earnings of BP Bunge Bioenergia, a
joint venture with BP p.l.c. ("BP").
Our remaining operations are not reportable segments, as defined by the applicable accounting standard, and are
classified as Corporate and Other. Corporate and Other includes salaries and overhead for corporate functions that are not
allocated to our individual reporting segments because the operating performance of each reporting segment is evaluated by the
Company's chief operating decision maker exclusive of these items, as well as certain other activities including Bunge
Ventures, the Company's captive insurance program, accounts receivable securitization activities, and certain income tax assets
and liabilities.
A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows:
(US$ in millions)
Net income (loss) attributable to Bunge
Interest income
Interest expense
Income tax expense
Noncontrolling interests' share of interest and tax
Total segment EBIT
Agribusiness Segment EBIT
Refined and Specialty Oils Segment EBIT
Milling Segment EBIT
Core Segment EBIT
Corporate and Other EBIT
Sugar and Bioenergy Segment EBIT
Non-core Segment EBIT
Total Segment EBIT
Year Ended
December 31,
2021
2020
2019
$
2,078 $
1,145 $
(1,280)
$
(48)
(22)
243
398
(10)
2,661 $
2,290
666
(74)
2,882
(333)
112
112
265
248
(3)
1,633 $
1,560
440
91
2,091
(371)
(87)
(87)
$
2,661 $
1,633 $
(31)
339
86
(5)
(891)
737
121
96
954
(248)
(1,597)
(1,597)
(891)
30
Core Segments
Agribusiness Segment
(US$ in millions)
Volumes (in thousand metric tons)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expense
Foreign exchange (losses) gains — net
EBIT attributable to noncontrolling interests
Other income — net
Income (loss) from affiliates
Total Agribusiness Segment EBIT
2021 Compared to 2020
2021 Bunge Annual Report
Year Ended
December 31,
2021
2020
2019
142,013
143,054
139,158
$
43,636 $
30,047 $
28,920
(41,133)
(28,185)
(27,765)
2,503
1,862
(432)
(24)
(28)
215
56
(520)
150
(21)
42
47
$
2,290 $
1,560 $
1,155
(490)
(36)
1
65
42
737
Agribusiness segment Net sales increased by $13,589 million, or 45%, to $43,636 million for the year ended
December 31, 2021, compared to $30,047 million for the year ended December 31, 2020. The increase was due to the
following:
•
•
In Processing, Net sales increased $7,125 million primarily due to significantly higher average sales prices in our
soybean processing businesses in all regions, driven by higher commodity prices, and significantly higher average
sales prices in our European softseed processing business. The above increases were partially offset by slightly lower
volumes in most key regions.
In Merchandising, Net sales increased $6,464 million due to significantly higher average sales prices, primarily in our
global corn, global oil and global wheat businesses, driven by higher commodity prices, and higher sales in our ocean
freight business driven by increased global freight demand and related sales prices.
Cost of goods sold increased by $12,948 million, or 46%, to $41,133 million for the year ended December 31, 2021
compared to $28,185 million for the year ended December 31, 2020. The increase was primarily due to the following:
•
•
In Processing, Cost of goods sold increased by $6,492 million due to higher global commodity prices and related sales
as noted above, as well as increased industrial input costs driven by inflation, in particular energy, partially offset by
favorable mark-to-market results in our global soybean processing businesses.
In Merchandising, Cost of goods sold increased by $6,456 million due to higher global commodity prices and related
sales as noted above, as well as increased industrial input costs driven by inflation, in particular energy, and
unfavorable mark-to-market results, primarily in our ocean freight business.
Gross profit increased by $641 million, or 34%, to $2,503 million for the year ended December 31, 2021, compared to
$1,862 million for the year ended December 31, 2020. The increase was primarily due to the following:
•
•
In Processing, an increase of $633 million was due to higher Net sales in excess of higher Cost of goods sold, as a
result of strong oil and meal demand leading to higher sales prices, coupled with favorable mark-to-market results, as
described above.
In Merchandising, an increase of $8 million was due to higher Net sales in excess of higher Cost of goods sold, as
higher average sales prices were partially offset by unfavorable mark-to-market results, as described above.
Selling, general and administrative ("SG&A") expenses decreased $88 million, or 17%, to $432 million for the year
ended December 31, 2021, compared to $520 million for the year ended December 31, 2020. The decrease was primarily due to
a higher portion of variable incentive costs being allocated to Corporate and Other activities in the current year, as well as
favorable currency movements, primarily from the weakening of the Argentine peso and Brazilian real.
31
2021 Bunge Annual Report
Foreign exchange gains (losses) - net decreased $174 million, to a loss of $24 million for the year ended December 31,
2021, compared to a gain of $150 million for the year ended December 31, 2020. Foreign exchange results were primarily
driven by losses on U.S. dollar denominated loans payable in non-U.S. functional currency operations.
Other income (expenses) - net increased $173 million, to income of $215 million for the year ended December 31,
2021, compared to income of $42 million for the year ended December 31, 2020. The increase is primarily due to a $158
million gain resulting from the sale of certain interior grain elevators located in the United States during 2021.
Segment EBIT increased $730 million, or 47%, to $2,290 million for the year ended December 31, 2021, compared to
$1,560 million for the year ended December 31, 2020. The increase was primarily due to the following:
•
•
In Processing, an increase of $558 million was primarily due to higher Gross profit, lower SG&A and higher Other
income (expense) - net, partially offset by foreign exchange losses, as described above.
In Merchandising, an increase of $172 million was primarily due to higher Gross profit, lower SG&A and higher Other
income (expense) - net, partially offset by foreign exchange losses, as described above.
2020 Compared to 2019
Agribusiness segment Net sales increased by $1,127 million, or 4%, to $30,047 million for the year ended
December 31, 2020, compared to $28,920 million for the year ended December 31, 2019. The increase was due to the
following:
•
•
In Processing, Net sales increased $638 million principally due to higher sales volumes in our South American, North
American, and European and Asian soybean processing businesses, primarily driven by increased meal demand in
China and increased oil demand in North America, as well as higher volumes and prices in our Canadian and European
softseed processing businesses, driven by demand for renewable diesel.
In Merchandising, Net sales increased $489 million primarily due to higher average sales prices and volumes in our
global corn and global oil businesses, driven by increased demand in China following an easing of trade restrictions in
place for much of 2019, as well as higher volumes in Brazil driven by increased farmer selling in response to
depreciation of Brazilian real versus the U.S. dollar earlier in the year. The above increases were partially offset by
lower volumes in our global wheat business.
Cost of goods sold increased by $420 million, or 2%, to $28,185 million for the year ended December 31, 2020,
compared to $27,765 million for the year ended December 31, 2019. The increase was primarily due to the following:
•
•
In Processing, Cost of goods sold increased by $195 million due to higher sales activity, as described above, as well as
unfavorable mark-to-market results in our processing businesses, partially offset by favorable translation impacts on
industrial costs as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during
2020, as well as non-recurring prior year property, plant and equipment (PP&E) impairment charges at various
facilities associated with portfolio rationalization initiatives.
In Merchandising, Cost of goods sold increased by $225 million due to the higher sales activity noted above, partially
offset by favorable mark-to-market results and translation impacts on industrial costs as most currencies in which such
expenses are denominated depreciated versus the U.S. dollar during 2020, as well as non-recurring prior year PP&E
impairment charges at various facilities associated with portfolio rationalization initiatives.
Gross profit increased by $707 million, or 61%, to $1,862 million for the year ended December 31, 2020, compared to
$1,155 million for the year ended December 31, 2019. The net increase was primarily due to the following:
•
•
In Processing, an increase of $443 million was due to higher Net sales in excess of higher Cost of goods sold,
primarily driven by strong demand in our soybean processing businesses across all regions, as described above.
In Merchandising, an increase of $264 million was due to higher Net sales in excess of higher Cost of goods sold,
primarily driven by strong demand in our global corn and global oil businesses, as described above.
SG&A expenses increased $30 million, or 6%, to $520 million for the year ended December 31, 2020, compared to
$490 million for the year ended December 31, 2019. The increase was mainly due to higher variable incentive costs on the back
of improved overall company profitability, partially offset by savings associated with ongoing cost initiatives, lower expenses
due to COVID-19 travel restrictions, favorable translation impacts as most currencies in which SG&A expenses are
32
2021 Bunge Annual Report
denominated depreciated versus the U.S. dollar during 2020, and an $11 million prior year write-off of an indemnification asset
associated with the reversal of an uncertain tax position.
Foreign exchange gains (losses) - net increased $186 million, to a gain of $150 million for the year ended
December 31, 2020, compared to a loss of $36 million for the year ended December 31, 2019. Foreign exchange results were
primarily driven by gains on U.S. dollar denominated loans receivable in non-U.S. functional currency operations.
Other income (expenses) - net decreased $23 million, to income of $42 million for the year ended December 31, 2020,
compared to income of $65 million for the year ended December 31, 2019. The decrease was primarily due to lower results
from our financial services activities during 2020.
Segment EBIT increased $823 million, or 112%, to $1,560 million for the year ended December 31, 2020, compared
to $737 million for the year ended December 31, 2019. The increase was primarily due to the following:
•
•
In Processing, an increase of $543 million was primarily due to higher Gross profit and increased foreign exchange
results, partially offset by higher SG&A expenses, as described above.
In Merchandising, an increase of $280 million was primarily due to higher Gross profit and increased foreign
exchange results, partially offset by higher SG&A expenses, as described above.
Refined and Specialty Oils Segment
(US$ in millions)
Volumes (in thousand metric tons)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expense
Foreign exchange losses — net
EBIT attributable to noncontrolling interests
Other income (expense) — net
Year Ended
December 31,
2021
2020
2019
9,202
9,529
$
13,332 $
9,599 $
9,632
9,193
(12,476)
(8,859)
(8,582)
856
(355)
(1)
(73)
239
740
(391)
(2)
(2)
95
611
(375)
(1)
7
(121)
121
Total Refined and Specialty Oils Segment EBIT
$
666 $
440 $
2021 Compared to 2020
Refined and Specialty Oils segment Net sales increased by $3,733 million, or 39%, to $13,332 million for the year ended
December 31, 2021, compared to $9,599 million for the year ended December 31, 2020, primarily due to significantly higher
average selling prices in North America, Europe and Asia, driven by strong demand for renewable diesel and in food services.
The above increases were partially offset by lower overall volumes, driven by our South American operations due to stay-at-
home orders associated with COVID-19 earlier in the current year, as well as the sale of our Brazilian margarine and
mayonnaise assets in late 2020.
Cost of goods sold increased by $3,617 million, or 41%, to $12,476 million for the year ended December 31, 2021,
compared to $8,859 million for the year ended December 31, 2020. The increase in Cost of goods sold was due to higher raw
material commodity prices as discussed above, higher industrial input costs, in particular energy, and a $50 million impairment
charge, which includes $15 million attributable to noncontrolling interests, recorded in relation to an oils facility in China.
These increases were partially offset by lower overall volumes as described in Net sales above.
Gross profit increased by $116 million, or 16%, to $856 million for the year ended December 31, 2021, compared to
$740 million for the year ended December 31, 2020. The increase was due to the increase in Net sales in excess of the increase
in Cost of goods sold, primarily driven by strong demand for renewable diesel and in food services, as described above.
SG&A expenses decreased $36 million, or 9%, to $355 million for the year ended December 31, 2021, compared to
$391 million for the year ended December 31, 2020, primarily due to higher bad debt expense recorded in the prior year,
33
2021 Bunge Annual Report
favorable currency movements, primarily from the weakening of the Brazilian real, and the allocation of a higher portion of
variable incentive costs to Corporate and Other activities in the current year.
EBIT attributable to noncontrolling interests, an expense when subsidiaries with noncontrolling interests generate
earnings before interest and tax, versus income when subsidiaries with noncontrolling interests generate loss before interest and
tax, decreased by $71 million, to expense of $73 million for the year ended December 31, 2021, compared to expense of
$2 million for the year ended December 31, 2020. The expense for the current year is primarily due to improved results in
Bunge Loders Croklaan, including the noncontrolling interest share of the gain on sale of our Rotterdam oils refinery, partially
offset by the noncontrolling interest share of an impairment charge on an oils facility in China.
Other income (expenses) - net increased $144 million to income of $239 million for the year ended December 31, 2021
compared to income of $95 million for the year ended December 31, 2020. Current period income was primarily due to a $219
million gain, which includes the amount attributable to noncontrolling interests, resulting on the sale of our Rotterdam oils
refinery, as well as a $19 million gain on the sale of a Mexican oils packaging facility. Prior period income was due to a gain on
the sale of our Brazilian margarine and mayonnaise assets, which closed during the fourth quarter of 2020.
Segment EBIT increased by $226 million, or 51%, to $666 million for the year ended December 31, 2021, compared to
$440 million for the year ended December 31, 2020. The increase was primarily due to higher Gross profit and Other income
(expenses) - net, and lower SG&A, partially offset by higher EBIT attributable to noncontrolling interests, as described above.
2020 Compared to 2019
Refined and Specialty Oils segment Net sales increased by $406 million, or 4%, to $9,599 million for the year ended
December 31, 2020, compared to $9,193 million for the year ended December 31, 2019. The increase was due to higher
average selling prices in all regions, and higher sales volumes to food processor customers driven by increased at-home
consumption associated with COVID-19 stay-at-home orders, partially offset by lower food services volumes, again due to
COVID-19. The year ended December 31, 2020 also benefited from $47 million of indirect tax credits related to the favorable
resolution of a Brazilian indirect tax claim.
Cost of goods sold increased by $277 million, or 3%, to $8,859 million for the year ended December 31, 2020, compared
to $8,582 million for the year ended December 31, 2019. The increase in Cost of goods sold was due to higher Net sales,
partially offset by favorable translation impacts, unfavorable mark-to-market results in 2019, and approximately $40 million of
non-recurring PP&E impairment charges at various facilities associated with portfolio rationalization initiatives during 2019.
Gross profit increased by $129 million, or 21%, to $740 million for the year ended December 31, 2020, compared to
$611 million for the year ended December 31, 2019. The increase was primarily due to higher Net sales in excess of higher
Cost of goods sold, primarily related to food processor margin expansion resulting from increased at-home consumption
associated with COVID-19 stay-at-home orders, as described above.
SG&A expenses increased $16 million, or 4%, to $391 million for the year ended December 31, 2020, compared to $375
million for the year ended December 31, 2019. The increase was primarily due to higher variable incentive costs on the back of
improved overall company profitability and increased bad debt expense, partially offset by favorable translation impacts and
lower travel costs associated with COVID-19 travel restrictions.
Other income (expenses) - net increased $216 million, or 179%, to income of $95 million for the year ended
December 31, 2020 compared to expense of $121 million for the year ended December 31, 2019, due to a gain on the sale of
our Brazilian margarine and mayonnaise assets, which closed in the fourth quarter of 2020, and a 2019 goodwill impairment
charge of $108 million, which includes $32 million attributable to noncontrolling interests associated with our Bunge Loders
Croklaan joint venture.
Segment EBIT increased by $319 million, or 264%, to $440 million for the year ended December 31, 2020, compared to
$121 million for the year ended December 31, 2019. The increase was primarily due to higher Gross profit and Other income
(expenses) - net, as described above.
34
Milling Segment
(US$ in millions)
Volumes (in thousand metric tons)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expense
Foreign exchange (losses) gains — net
EBIT attributable to noncontrolling interests
Other (expense) income — net
Loss from affiliates
Total Milling Segment EBIT
2021 Compared to 2020
2021 Bunge Annual Report
Year Ended
December 31,
2021
2020
2019
7,189
6,091
$
1,909 $
1,616 $
6,824
1,739
(1,882)
(1,427)
(1,555)
27
(96)
(2)
(1)
—
(2)
$
(74) $
189
(100)
4
—
(1)
(1)
91 $
184
(114)
6
(2)
22
—
96
Milling segment Net sales increased by $293 million, or 18%, to $1,909 million for the year ended December 31, 2021,
compared to $1,616 million for the year ended December 31, 2020. The increase was primarily due to higher volumes and
average sales prices in our South American and Mexican wheat milling businesses and higher average sales prices in our North
American corn milling business, partially offset by lower volumes in North America due to the sale of our rice milling business
in the prior year.
Cost of goods sold increased by $455 million, or 32%, to $1,882 million for the year ended December 31, 2021,
compared to $1,427 million for the year ended December 31, 2020. The increase was primarily driven by the increased sales
activity noted above, higher industrial costs, in particular energy, and a non-recurring impairment charge of $170 million
related to the classification of our Mexican wheat milling business as held-for-sale, as described further in Note 2- Acquisitions
and Dispositions. These increases were partially offset by lower volumes in North America resulting from the prior year sale of
our rice business and favorable current year mark-to-market results.
Gross profit decreased by $162 million, or 86%, to $27 million for the year ended December 31, 2021, compared to $189
million for the year ended December 31, 2020. The decrease was primarily due to the increase in Cost of goods sold in excess
of the increase in Net sales, mostly due to a non-recurring impairment charge of $170 million related to the classification of our
Mexican wheat milling business as held-for-sale, as described above.
SG&A expenses decreased by $4 million, or 4%, to $96 million for the year ended December 31, 2021, compared to
$100 million for the year ended December 31, 2020. The decrease was primarily due to a higher portion of variable incentive
costs being allocated to Corporate and Other.
Segment EBIT decreased by $165 million, or 181%, to a loss before interest and taxes of $74 million for the year ended
December 31, 2021, compared to earnings before interest and taxes of $91 million for the year ended December 31, 2020. The
decrease was primarily due to lower Gross profit, mostly driven by a non-recurring impairment charge of $170 million related
to the classification of our Mexican wheat milling business as held-for-sale, as described above.
2020 Compared to 2019
Milling segment Net sales decreased by $123 million, or 7%, to $1,616 million for the year ended December 31, 2020,
compared to $1,739 million for the year ended December 31, 2019. The decrease was primarily due to lower average sales
prices in Brazil and Mexico, and lower sales prices in our U.S. corn milling business, which more than offset higher volumes.
Cost of goods sold decreased by $128 million, or 8%, to $1,427 million for the year ended December 31, 2020, compared
to $1,555 million for the year ended December 31, 2019. The decrease was due to lower Net sales, as described above,
favorable translation impacts on industrial costs following depreciation of the Brazilian real and Mexican peso versus the U.S.
dollar in 2020, and approximately $28 million of non-recurring impairment charges associated with our U.S. extrusion business
and portfolio rationalization initiatives in 2019.
35
2021 Bunge Annual Report
Gross profit increased by $5 million, or 3%, to $189 million for the year ended December 31, 2020, compared to $184
million for the year ended December 31, 2019. The increase was due to a decrease in Cost of goods sold in excess of the
decrease in Net sales, as described above.
SG&A expenses decreased by $14 million, or 12%, to $100 million for the year ended December 31, 2020, compared to
$114 million for the year ended December 31, 2019 as favorable translation impacts and lower travel costs associated with
COVID-19 restrictions were partially offset by higher variable compensation costs associated with improved company
profitability.
Other income (expenses) - net decreased $23 million, to expense of $1 million for the year ended December 31, 2020,
compared to income of $22 million for the year ended December 31, 2019. The decrease is primarily due to a $19 million gain
on the sale of two facilities in Brazil during 2019.
Segment EBIT decreased $5 million, or 5%, to $91 million for the year ended December 31, 2020, compared to $96
million for the year ended December 31, 2019. The decrease was primarily due to lower Other income (expense) - net, partially
offset by lower SG&A and higher Gross profit, as described above.
Corporate and Other
(US$ in millions)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expense
Foreign exchange (losses) gains — net
EBIT attributable to noncontrolling interests
Other income (expense) — net
Loss from affiliates
Total Corporate and Other EBIT
2021 Compared to 2020
Year Ended
December 31,
2021
2020
2019
$
5 $
(34)
(29)
(350)
(11)
3
54
—
— $
(9)
(9)
—
(4)
(4)
(347)
(335)
(2)
—
(12)
(1)
3
—
89
(1)
(248)
$
(333) $
(371) $
Corporate and Other EBIT improved $38 million, or 10%, to a loss of $333 million for the year ended December 31,
2021, compared to a loss of $371 million for the year ended December 31, 2020. The improved result is primarily due to our
corporate venture capital unit (Bunge Ventures) activities, which benefited from a net mark-to-market gain on the initial public
offering of two of its investments during the current year period, as well as a bad debt expense and related legal provision in
relation to an historical account receivable balance deemed uncollectible in the prior year period, partially offset by higher
variable incentive costs in the current year due in part to allocating a larger portion of variable incentive costs from the
segments to Corporate and Other activities in the current year.
2020 Compared to 2019
Corporate and Other EBIT decreased $123 million, or 50%, to a loss of $371 million for the year ended December 31,
2020, compared to a loss of $248 million for the year ended December 31, 2019. The decrease is primarily due to higher
variable incentive costs associated with improved company profitability during 2020, $66 million in bad debt expense in
relation to a disputed account receivable balance stemming from an historical account receivable balance deemed uncollectible,
and positive mark-to-market results on one of our corporate venture capital unit investments in 2019, partially offset by non-
recurring impairment charges and related employee severance costs associated with the relocation of our corporate headquarters
in 2019, and lower travel costs in 2020 due to COVID-19 restrictions.
36
Non-core Segment
Sugar and Bioenergy Segment
(US$ in millions)
Volumes (in thousand metric tons)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expense
Foreign exchange losses — net
EBIT attributable to noncontrolling interests
Other income (expense) — net
Income (loss) from affiliates
2021 Bunge Annual Report
$
Year Ended
December 31,
2021
2020
2019
375
270 $
(264)
6
(1)
—
—
1
106
334
142 $
(139)
3
—
—
—
2
(92)
3,836
1,288
(2,692)
(1,404)
(37)
(89)
—
(66)
(1)
Total Sugar and Bioenergy Segment EBIT
$
112 $
(87) $
(1,597)
2021 Compared to 2020
Segment EBIT increased $199 million, or 229%, to income of $112 million for the year ended December 31, 2021, from
a loss of $87 million for the year ended December 31, 2020. The increase is due to more favorable results from our investment
in BP Bunge Bioenergia, driven by higher sugar and ethanol volumes and higher average sugar and ethanol sales prices in the
current period, as well as a significant prior year foreign exchange loss on U.S. dollar denominated debt of the joint venture due
to a large depreciation in the Brazilian real during 2020.
2020 Compared to 2019
Segment EBIT increased by $1,510 million, or 95% to a loss of $87 million for the year ended December 31, 2020,
compared to a loss of $1,597 million for the year ended December 31, 2019. The increase was primarily due to $1,673 million
in non-recurring charges incurred in 2019 associated with the contribution of our Brazilian sugar and bioenergy operations,
comprising the majority of our Sugar and Bioenergy segment, to the BP Bunge Bioenergia joint venture during the fourth
quarter of 2019.
Interest—A summary of consolidated interest income and expense follows:
(US$ in millions)
Interest income
Interest expense
2021 Compared to 2020
Year Ended
December 31,
2021
2020
2019
$
48 $
(243)
22 $
(265)
31
(339)
Interest income increased $26 million to $48 million for the year ended December 31, 2021, compared to $22 million for
the year ended December 31, 2020. Interest expense decreased $22 million to $243 million for the year ended December 31,
2021, compared to $265 million for the year ended December 31, 2020. The decrease in net interest expense was primarily due
to lower variable interest rates, as well as increased Interest income primarily driven by the positive resolution of an historical
value-added tax matter, during the year ended December 31, 2021.
2020 Compared to 2019
Interest income decreased $9 million to $22 million for the year ended December 31, 2020, compared to $31 million for
the year ended December 31, 2019. Interest expense decreased $74 million to $265 million for the year ended December 31,
2020, compared to $339 million for the year ended December 31, 2019. The net decrease was the result of lower average
interest rates on outstanding debt during the year ended December 31, 2020.
37
2021 Bunge Annual Report
Liquidity and Capital Resources
Our main financial objectives are to prudently manage financial risks, ensure consistent access to liquidity and minimize
cost of capital in order to efficiently finance our business and maintain balance sheet strength. We generally finance our
ongoing operations with cash flows generated from operations, issuances of commercial paper, borrowings under various
bilateral and syndicated revolving credit facilities, term loans and proceeds from the issuance of senior notes. Acquisitions and
long-lived assets are generally financed with a combination of equity and long-term debt.
Working Capital
US$ in millions, except current ratio
Cash and cash equivalents
Trade accounts receivable, net
Inventories
Other current assets(1)
Total current assets
Short-term debt
Current portion of long-term debt
Trade accounts payable
Current operating lease obligations
Other current liabilities(2)
Total current liabilities
Working capital(3)
Current ratio(3)
As of December 31,
2021
2020
902 $
2,112
8,431
5,015
16,460 $
673 $
504
4,250
350
3,547
9,324 $
7,136 $
1.77
352
1,717
7,172
6,940
16,181
2,828
8
2,636
235
5,278
10,985
5,196
1.47
$
$
$
$
$
(1) Comprises Assets held for sale and Other current assets
(2) Comprises Liabilities held for sale and Other current liabilities
(3) Working capital is defined as Total current assets less Total current liabilities; Current ratio represents Total current
assets divided by Total current liabilities
Working capital was $7,136 million at December 31, 2021, an increase of $1,940 million, or 37%, from working capital
of $5,196 million at December 31, 2020.
Cash and Cash Equivalents - Cash and cash equivalents were $902 million at December 31, 2021, an increase of
$550 million from $352 million at December 31, 2020, primarily as a result of improved operating results. Cash balances are
managed in accordance with our investment policy, the objectives of which are to preserve the principal value of our cash
assets, maintain a high degree of liquidity and deliver competitive returns subject to prevailing market conditions. Cash
balances are invested in short-term deposits with highly rated financial institutions and in U.S. government securities.
Trade accounts receivable, net - Trade accounts receivable, net were $2,112 million at December 31, 2021, an increase of
$395 million from $1,717 million at December 31, 2020. The increase is primarily due to increased Net sales in the current year
driven by factors described in the Segment Overview & Results of Operations section above.
Inventories - Inventories were $8,431 million at December 31, 2021, an increase of $1,259 million from $7,172
million at December 31, 2020. The increase is primarily related to higher average commodity prices at the end of the current
year relative to the prior year.
RMI comprises agricultural commodity inventories, including 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. Total RMI reported at fair value were $6,869 million and $5,961 million at December 31, 2021 and December 31,
2020, respectively (see Note 5- Inventories, to our consolidated financial statements).
Other current assets - Other current assets, including Assets held for sale, were $5,015 million at December 31, 2021, a
decrease of $1,925 million from $6,940 million at December 31, 2020. The decrease is primarily due to decreased unrealized
gains on derivative contracts, lower margin deposits, and completion of the sale of our Rotterdam oils facility and United States
38
2021 Bunge Annual Report
interior grain assets during the year ended December 31, 2021, which were classified as held for sale at December 31, 2020.
These decreases were partially offset by an increase in Deferred purchase price receivable (see Note 4- Trade Accounts
Receivable and Trade Receivable Securitization Program, to our consolidated financial statements) as well as the
reclassification of certain assets associated with our Mexico wheat milling business as held for sale during the current year (see
Note 2- Acquisitions and Dispositions, to our consolidated financial statements).
Short-term debt - Short-term debt, including the current portion of long-term debt, was $1,177 million at December 31,
2021, a decrease of $1,659 million from $2,836 million at December 31, 2020. The lower short-term debt level at December 31,
2021 compared to December 31, 2020 is primarily driven by a $1 billion long-term bond issuance in the second quarter of 2021
(see Note 18- Long-term Debt, to our consolidated financial statements), from which a portion of the proceeds were used to pay
down short-term debt, in addition to increased cash from operations used to pay down debt in the current year.
Trade accounts payable - Trade accounts payable were $4,250 million at December 31, 2021, an increase of $1,614
million from $2,636 million at December 31, 2020. The increase in Trade accounts payable was primarily due to higher average
inventory purchase prices during the current year as well as the timing of payments.
Other current liabilities - Other current liabilities, including Liabilities held for sale, were $3,547 million at
December 31, 2021, a decrease of $1,731 million from $5,278 million at December 31, 2020. The decrease was primarily due
to decreased unrealized losses on derivative contracts, the sale of our United States interior grain assets that were classified as
held for sale at December 31, 2020, and a payment to acquire the noncontrolling equity interests in our Z.T. Kruszwica S.A.
subsidiary in Europe during the year ended December 31, 2021 (see Note 13- Other Current Liabilities, to our consolidated
financial statements). The Liabilities held for sale balance as of December 31, 2021 relates to the classification of our Mexico
wheat milling business as held for sale during the current year (see Note 2- Acquisitions and Dispositions, to our consolidated
financial statements).
Debt
Financing Arrangements and Outstanding Indebtedness—We conduct most of our financing activities through a
centralized financing structure that provides the company with efficient access to debt and capital markets. This structure
includes a master trust, the primary assets of which comprise intercompany loans made to Bunge Limited and its subsidiaries.
Certain of Bunge Limited's 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe B.V. and
Bunge Asset Funding Corp., fund the master trust with short and long-term debt obtained from third parties, including through
our commercial paper program and certain credit facilities, as well as the issuance of senior notes. Borrowings by these finance
subsidiaries carry full, unconditional guarantees by Bunge Limited.
Revolving Credit Facilities—At December 31, 2021, we had $5,565 million of aggregate committed borrowing capacity
under our commercial paper program and various revolving bilateral and syndicated credit facilities, all of which was unused
and available. The following table summarizes these facilities for the years presented:
Commercial Paper Program and Revolving Credit Facilities (1)
Maturities
Total
Committed
Capacity (6)
Borrowings
Outstanding
December 31,
2021
December 31,
2021
December 31,
2020
Commercial paper
Revolving credit facilities
2026
$
600 $
— $
549
$1 Billion 364-day Revolving Credit Agreement (2)
$1.75 Billion 2024 Revolving Credit Facility (3)
$1.35 Billion 5-year Revolving Credit Agreement (4)
$865 Million 2026 Revolving Credit Facility (5)
2022
2024
2026
2026
Total revolving credit facilities
Total (6)
1,000
1,750
1,350
865
4,965
—
—
—
—
—
250
554
—
140
944
$
5,565 $
— $
1,493
(1) See Note 17- Short-term Debt and Credit Facilities for further information on these programs.
(2) The $1 Billion 364-day Revolving Credit Agreement replaced the $1.25 Billion 364-day Revolving Credit Agreement
that was in place as of December 31, 2020 and set to mature on October 21, 2021.
39
2021 Bunge Annual Report
(3) The $1.75 Billion 2024 Revolving Credit Facility replaced the $1.75 Billion 2022 Revolving Credit Facility that was in
place as of December 31, 2020 and set to mature on December 12, 2022.
(4) The $1.35 Billion Credit Agreement replaced the $1.1 billion five-year syndicated revolving credit agreement that was
in place as of December 31, 2020 and set to mature on December 14, 2023.
(5) The $865 Million 2026 Facility replaced the $865 million revolving credit facility that was in place as of
December 31, 2020 and set to mature on September 6, 2022.
(6) Total committed capacity for our commercial paper program and revolving credit facilities excludes the committed
capacity of our $250 million delayed draw term loan required to be drawn by October 29, 2022 (see Note 18- Long-
term Debt).
Short and long-term debt—Our short and long-term debt decreased by $1,324 million at December 31, 2021 from
December 31, 2020, primarily due to cash inflows from operations, including net proceeds from beneficial interests in
securitized trade receivables. These cash inflows helped to reduce the debt required to fund the increased working capital
requirements throughout the year. For the year ended December 31, 2021, our average short and long-term debt outstanding
was approximately $7,181 million compared to approximately $6,100 million for the year ended December 31, 2020. Our long-
term debt outstanding balance, including the current-portion of long-term debt, was $5,291 million at December 31, 2021
compared to $4,460 million at December 31, 2020.
The following table summarizes our short-term debt activity at December 31, 2021.
(US$ in millions)
Bank Borrowings(1)
Commercial Paper
Total
Outstanding
Balance at
December 31,
2021
$
$
673
—
673
Weighted
Average
Interest
Rate at
December 31,
2021
Highest
Balance
Outstanding
During
2021
Average
Balance
During
2021
Weighted
Average
Interest
Rate
During
2021
19.62 % $
3,683 $
— %
475
19.62 %
$
2,044
154
2,198
4.18 %
0.25 %
3.90 %
(1) Includes $566 million of local currency bank borrowings in certain European, South American and Asia-Pacific
countries at a weighted average interest rate of 23.14% as of December 31, 2021.
From time to time, through our financing subsidiaries, we enter into bilateral short-term credit lines as necessary based on
our financing requirements. At December 31, 2021 there were no borrowings outstanding under these bilateral short-term credit
lines. In addition, Bunge's operating companies had $673 million and $785 million in short-term borrowings outstanding from
local bank lines of credit at December 31, 2021 and 2020, respectively, to support working capital requirements.
On October 29, 2021, we entered into an unsecured $250 million delayed draw term loan (the "$250 Million Delayed
Draw Term Loan") with a group of lenders that is required to be drawn by October 29, 2022. The $250 Million Delayed Draw
Term Loan will bear interest at LIBOR plus an applicable margin, as defined in the $250 Million Delayed Draw Term Loan
agreement. The $250 Million Delayed Draw Term Loan matures on October 29, 2028 and was not drawn as of December 31,
2021.
40
The following table summarizes our short and long-term debt:
(US$ in millions)
Short-term debt: (1)
Short-term debt (2)
Current portion of long-term debt
Total short-term debt
Long-term debt:
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) (5)
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B)
3.00% Senior Notes due 2022
1.85% Senior Notes due 2023 - Euro
4.35% Senior Notes due 2024
1.63% Senior Notes due 2025
3.25% Senior Notes due 2026
3.75% Senior Notes due 2027
2.75% Senior Notes due 2031(3)
Other
Subtotal
Less: Current portion of long-term debt
Total long-term debt (4)
Total debt
2021 Bunge Annual Report
December 31,
2021
2020
$
$
673
504
1,177
267
89
399
906
598
596
697
596
989
154
5,291
(504)
4,787
$
5,964
$
2,828
8
2,836
297
89
399
982
597
595
696
595
—
210
4,460
(8)
4,452
7,288
(1) Includes secured debt of $43 million and $1 million at December 31, 2021 and December 31, 2020, respectively.
(2) Includes $566 million and $558 million of local currency borrowings in certain European, South American, and Asia-
Pacific countries at a weighted average interest rate of 23.14% and 24.54% as of December 31, 2021 and December 31,
2020, respectively.
(3) See Note 18- Long-term Debt for further information on the 2.75% Senior Notes due 2031.
(4) Includes secured debt of $50 million and $5 million at December 31, 2021 and December 31, 2020, respectively.
(5) Effective January 1, 2022, the three-month Yen LIBOR rate was discontinued and replaced by the Tokyo Overnight
Average Rate ("TONAR" or "TONA").
Credit Ratings—Bunge's debt ratings and outlook by major credit rating agencies at December 31, 2021 were as follows:
Standard & Poor's
Moody's
Fitch
Short-term
Debt(1)
A-1
P-1
Long-term
Debt
BBB
Baa2
BBB
Outlook
Stable
Stable
Stable
(1) Short-term rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.
Our debt agreements do not have any credit rating downgrade triggers that would accelerate the maturity of our debt.
However, credit rating downgrades would increase borrowing costs under our credit facilities and, depending on their severity,
could impede our ability to obtain credit facilities or access the capital markets in the future on competitive terms. A significant
increase in our borrowing costs could impair our ability to compete effectively in our business relative to competitors with
higher credit ratings.
Our credit facilities and certain senior notes require us to comply with specified financial covenants, including minimum
net worth, minimum current ratio, maximum debt to capitalization ratio, and limitations on secured indebtedness. We were in
compliance with these covenants as of December 31, 2021.
41
2021 Bunge Annual Report
Trade Receivable Securitization Program
The Company, and certain of its subsidiaries participate in a trade receivable 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 $925 million against receivables sold into the Program. The
Program, which provides us with an additional source of liquidity, terminates on May 17, 2024, unless extended for an
additional period in accordance with the terms of the receivables transfer agreement.
Our risk of loss following the sale of the trade receivables under the program is limited to the deferred purchase price
receivable (the "DPP"), which at December 31, 2021 and 2020 had a fair value of $496 million and $177 million, respectively,
and is included in Other current assets in our consolidated balance sheets (see Note 4- Trade Accounts Receivable and Trade
Receivable Securitization Program to our consolidated financial statements included as part of this Annual Report on Form 10-
K). The DPP will be repaid in cash as receivables are collected, generally within 30 days. Delinquencies and credit losses on
trade receivables sold under the Program during the years ended December 31, 2021, 2020 and 2019 were insignificant.
Interest Rate Swap Agreements
We may use interest rate swaps as hedging instruments and record the swaps at fair value in the consolidated balance
sheets with changes in fair value recorded contemporaneously in earnings. Additionally, the carrying amount of the associated
debt is adjusted through earnings for changes in fair value due to changes in benchmark interest rates. See Note 16- Derivative
Instruments and Hedging Activities to our consolidated financial statements.
Equity
Total equity is set forth in the following table:
(US$ in millions)
Convertible perpetual preference shares
Common shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury shares, at cost (2021—16,726,697 and 2020—15,428,313)
Total Bunge shareholders' equity
Noncontrolling interests
Total equity
December 31,
2021
2020
$
690 $
1
5,590
8,979
(6,471)
(1,120)
7,669
156
$
7,825 $
690
1
5,408
7,236
(6,246)
(1,020)
6,069
136
6,205
Total Bunge shareholders' equity was $7,669 million at December 31, 2021 compared to $6,069 million at December 31,
2020. The increase in Bunge shareholders' equity during the year ended December 31, 2021 was primarily due to $2,078
million of Net income attributable to Bunge and $122 million from the issuance of common shares under our share based
compensation programs, partially offset by $225 million of Other comprehensive loss, primarily driven by currency translation
adjustments, $294 million and $34 million of declared dividends to common and preferred shareholders, respectively, and $100
million of common share repurchases.
Noncontrolling interest increased to $156 million at December 31, 2021 from $136 million at December 31, 2020
primarily due to Net income attributable to our noncontrolling interest entities, offset by dividends paid to non-controlling
interest holders.
At December 31, 2021, we had 6,899,683 4.875% cumulative convertible perpetual preference shares outstanding with an
aggregate liquidation preference of $690 million. Each convertible perpetual 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. The
convertible perpetual preference shares carry an annual dividend of $4.875 per share payable quarterly. 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 perpetual preference share is convertible, at the holder's option, at any time into
1.2799 Bunge Limited common shares, based on the conversion price of $78.1322 per share, subject to certain additional anti-
dilution adjustments (which represents 8,830,904 Bunge Limited common shares at December 31, 2021). At any time, if the
closing price of our common shares equals or exceeds 130% of the conversion price for 20 trading days during any consecutive
30 trading days (including the last trading day of such period), we may elect to cause the convertible perpetual preference
42
2021 Bunge Annual Report
shares to be automatically converted into Bunge Limited common shares at the then-prevailing conversion price. The
convertible perpetual preference shares are not redeemable by us at any time.
Share repurchase program - In May 2015, we established a program for the repurchase of up to $500 million of our
issued and outstanding common shares. The program has no expiration date. Bunge repurchased 1,298,384 common shares
under this program during the year ended December 31, 2021, for $100 million, and 2,546,000 common shares under this
program during the year ended December 31, 2020, for $100 million. Total repurchases under the program from its inception in
May 2015 through December 31, 2021 were 8,551,824 shares for $500 million.
During October 2021, our Board of Directors approved a new program for the repurchase of up to $500 million of our
issued and outstanding common shares. The program has no expiration date, and there have been no repurchases under this
program as of December 31, 2021.
Cash Flows
US$ in millions
Cash used for operating activities
Cash provided by investing activities
Cash (used for) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
and restricted cash
Net increase (decrease) in cash and cash equivalents and
restricted cash
Year ended December 31,
2021
2020
2019
$
(2,894) $
5,113
(1,632)
(63)
(3,536) $
1,813
1,763
19
$
524 $
59 $
(808)
1,503
(771)
5
(71)
Our cash flows from operations vary depending on, among other items, the market prices and timing of the purchase
and sale of our inventories. Generally, during periods when commodity prices are rising, our Agribusiness operations require
increased use of cash to support working capital to acquire inventories and fund daily settlement requirements on exchange
traded futures that we use to minimize price risk related to the purchase and sale of our inventories.
2021 Compared to 2020
For the year ended December 31, 2021, our cash and cash equivalents and restricted cash increased $524 million,
compared to a decrease of $59 million for the year ended December 31, 2020.
Operating: Cash used for operating activities was $2,894 million for the year ended December 31, 2021, a decrease of
$642 million compared to cash used for operating activities of $3,536 million for the year ended December 31, 2020. The
decrease in cash used was primarily due to higher Net income and lower cash required to fund working capital, partially offset
by increased Beneficial interest in securitized trade receivables driven by increased sales during the year ended December 31,
2021.
US$ in millions
Cash used for operating activities
Net proceeds from beneficial interest in securitized trade receivables
Cash provided by (used for) operating activities, adjusted
Year ended December 31,
2021
2020
$
$
(2,894) $
5,057
2,163 $
(3,536)
1,943
(1,593)
Cash provided by operating activities, adjusted for proceeds from beneficial interest in securitized trade receivables
was $2,163 million for the year ended December 31, 2021, compared to cash used for operating activities of $1,593 million for
the year ended December 31, 2020. The change was primarily due to higher Net income, net of non-cash gains and losses,
during the year ended December 31, 2021.
Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency
risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local
currency. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is
the functional currency, translated into U.S. dollars. U.S. dollar-denominated loans are remeasured into their respective
functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating
subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local
43
2021 Bunge Annual Report
currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are
remeasured into U.S. dollars at the exchange rate on the applicable balance sheet date. The resulting gain or loss is included in
our consolidated statements of income as Foreign exchange (losses) gains - net. For the year ended December 31, 2021 we
recorded a foreign currency loss on net debt of $78 million versus a foreign currency gain on net debt for the year ended
December 31, 2020 of $206 million, which were included as adjustments to reconcile Net income to Cash used for operating
activities in the line item "Foreign exchange (gain) loss on net debt" in our consolidated statements of cash flows. This
adjustment is required as the gains and losses are non-cash items that arise from financing activities and therefore will have no
impact on cash flows from operations.
Investing: Cash provided by investing activities was $5,113 million for the year ended December 31, 2021 compared to
$1,813 million for the year ended December 31, 2020, an increase of $3,300 million. The increase was primarily due to higher
net proceeds from beneficial interests in securitized trade receivables as well as proceeds from the sales of our United States
interior grain elevators and oils facilities in Rotterdam and in Mexico, partially offset by increased net payments for investments
for the year ended December 31, 2021.
For the year ended December 31, 2021, net cash proceeds from beneficial interests in securitized trade receivables was
$5,057 million. We also generated proceeds from the divestiture of businesses and disposal of property, plant and equipment of
$647 million driven by proceeds from the sales of our United States interior grain elevators and oils facilities in Rotterdam and
in Mexico. In addition, we received proceeds from investments of $171 million, primarily promissory notes related to financial
services investments, which were more than offset by payments of $308 million for such investments. We also made payments
for capital expenditures of $399 million related to capital projects at various facilities. For the year ended December 31, 2020,
cash from beneficial interests in securitized trade receivables was $1,943 million. We also generated proceeds from the
divestiture of businesses and disposal of property, plant and equipment of $194 million driven by proceeds from sales of our
Brazilian margarine and mayonnaise business and a U.S. rice mill. In addition, we received proceeds from investments of $305
million, primarily from promissory notes related to financial services investments, which were more than offset by payments of
$337 million for such investments. We also made payments for capital expenditures of $365 million related to capital projects
at various facilities.
Financing: Cash used for financing activities was $1,632 million for the year ended December 31, 2021, a decrease of
$3,395 million, compared to cash provided by financing activities of $1,763 million for the year ended December 31, 2020,
For the year ended December 31, 2021, we had net cash repayments from short-term and long-term debt of $1,097
million, primarily driven by net repayments of Short-term debt, partially offset by proceeds from Long-term debt resulting from
our $1 Billion bond issuance in May 2021. Short-term debt is primarily used to fund seasonal working capital requirements,
mostly comprising RMI, which can fluctuate based on funding requirements. Additionally, we paid $147 million to acquire the
noncontrolling equity interest of our Polish subsidiary, Z.T. Kruszwica S.A. (see Note 13- Other Current Liabilities, to our
consolidated financial statements), paid dividends of $323 million to our common shareholders and holders of our convertible
preference shares, paid $76 million in dividends to noncontrolling interest shareholders of certain of our non-wholly owned
subsidiaries, primarily Loders, and repurchased $100 million of common shares. For the year ended December 31, 2020, net
cash proceeds from short-term and long-term debt were $2,202 million, primarily used to fund seasonal working capital
requirements, mostly comprising RMI. We also paid dividends of $316 million to our common shareholders and holders of our
convertible preference shares and repurchased $100 million of common shares.
2020 Compared to 2019
In 2020, our cash and cash equivalents, and restricted cash increased by $59 million, compared to a decrease of $71
million in 2019.
Operating: Cash used for operating activities was $3,536 million for the year ended December 31, 2020, an increase of
$2,728 million compared to cash used for operating activities of $808 million for the year ended December 31, 2019. The
increase was due to higher working capital funding requirements, primarily RMI and proceeds from beneficial interests in
securitized trade receivables, as a result of higher average commodity prices, partially offset by higher net income during the
year ended December 31, 2020.
US$ in millions
Cash provided by (used for) operating activities
Net proceeds from beneficial interest in securitized trade receivables
Cash provided by (used for) operating activities, adjusted
Year ended December 31,
2020
2019
$
$
(3,536) $
1,943
(1,593) $
(808)
1,312
504
44
2021 Bunge Annual Report
Cash used for operating activities, adjusted for proceeds from beneficial interest in securitized trade receivables was
$1,593 million for the year ended December 31, 2020, compared to cash provided by operating activities of $504 million for the
year ended December 31, 2019. The change in cash provided by (used for) operating activities is due to higher working capital
funding requirements, primarily RMI, partially offset by higher net income during the year ended December 31, 2020.
Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency
risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local
currency. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is
the functional currency, translated into U.S. dollar. U.S. dollar-denominated loans are remeasured into their respective
functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating
subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local
currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are
remeasured into U.S. dollars at the exchange rate on the applicable balance sheet date. The resulting gain or loss is included in
our consolidated statements of income as foreign exchange gains or losses. For the year ended December 31, 2020, we recorded
a foreign currency gain on net debt of $206 million versus a foreign currency loss on net debt for the year ended December 31,
2019 of $139 million, which were included as adjustments to reconcile Net income to Cash used for operating activities in the
line item "Foreign exchange (gain) loss on net debt" in our consolidated statements of cash flows. This adjustment is required as
these losses are non-cash items that arise from financing activities and therefore will have no impact on cash flows from
operations.
Investing: Cash provided by investing activities was $1,813 million for the year ended December 31, 2020 compared to
$1,503 million for the year ended December 31, 2019, an increase of $310 million. The increase was primarily due to higher
proceeds from beneficial interests in securitized trade receivables, lower capital expenditures, and higher cash inflows from
settlements of net investment hedges, offset by lower net proceeds from investments and the divestiture of businesses and
property, plant and equipment.
For the year ended December 31, 2020, cash from beneficial interests in securitized trade receivables was $1,943 million.
In addition, we received proceeds from investments of $305 million, primarily promissory notes related to financial services
investments, which were more than offset by payments of $337 million for such investments. We also made payments for
capital expenditures of $365 million related to capital projects at various facilities and received $65 million in proceeds from
the settlement of net investment hedges of certain of our foreign operations. For the year ended December 31, 2019, cash from
beneficial interests in securitized trade receivables was $1,312 million. In addition, we received proceeds from investments of
$449 million, primarily from promissory notes related to financial services investments, partially offset by payments of $393
million made for such investments. We also made payments for capital expenditures of $524 million, which primarily related to
the replanting of sugarcane in our Brazilian sugar and biofuels business that was contributed to the BP Bunge Bioenergia joint
venture in late 2019, as well as other capital projects at various facilities.
Financing: Cash provided by financing activities was $1,763 million for the year ended December 31, 2020, an increase
of $2,534 million, compared to cash used by financing activities of $771 million for the year ended December 31, 2019.
For the year ended December 31, 2020, we had net cash proceeds from short-term and long-term debt of $2,202 million,
primarily used to fund seasonal working capital requirements, mostly comprising RMI. We also paid dividends of $316 million
to our common shareholders and holders of our convertible preference shares, and we repurchased $100 million of common
shares. For the year ended December 31, 2019, net cash repayments of short-term and long-term debt were $438 million,
primarily due to lower overall debt needs following the transfer of our industrial sugar business in Brazil to the BP Bunge
Bioenergia joint venture. In addition, we paid dividends of $317 million to our common shareholders and holders of our
convertible preference shares.
Capital Expenditures
Our cash payments made for capital expenditures were $399 million, $365 million and $524 million for the years ended
December 31, 2021, 2020 and 2019, respectively. We intend to make capital expenditures in the range of $650 million to
$750 million in 2022. Our priorities for 2022 are to maintain the cash generating capacity of our assets through non-
discretionary projects, such as maintenance, safety and compliance, as well as discretionary investments in growth and
productivity projects, focusing on our strategy to strengthen our oilseeds platform, increase participation in biofuels and plant-
based proteins, and grow our value-added oils business. These discretionary and non-discretionary capital investments will also
help us achieve certain of our environmental and sustainability related objectives. We intend to fund these capital expenditures
primarily with cash flows from operations.
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2021 Bunge Annual Report
Off-Balance Sheet Arrangements
Guarantees
We have issued or were party to the following guarantees at December 31, 2021:
(US$ in millions)
Unconsolidated affiliates guarantee (1)
Residual value guarantee (2)
Other guarantees
Total
Maximum
Potential
Future
Payments
$
$
244
271
7
522
(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
amounts drawn under such debt facilities at December 31, 2021, our potential liability was $234 million, and we have
recorded a $7 million obligation related to these guarantees.
(2) We have issued guarantees to certain financial institutions that are party to certain operating lease arrangements for
railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion
of the lease term. These leases expire at various dates from 2022 through 2028. At December 31, 2021, no obligation
has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease
obligations or Non-current operating lease obligations (see Note 27- Leases, to our consolidated financial statements).
We have provided a guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North
America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA, to grain
producers and/or depositors in the State of Illinois who have delivered commodities to BNA's Illinois facilities.
Contractual Obligations
The following table summarizes our scheduled contractual obligations and their expected maturities at December 31,
2021, and the effect such obligations are expected to have on our liquidity and cash flows in the future periods indicated.
(US$ in millions)
Short-term debt
Long-term debt(1)
Variable interest rate obligations
Interest obligations on fixed rate debt
Non-cancelable lease obligations(2)
Capital commitments
Freight supply agreements(3)
Inventory purchase commitments
Power supply purchase commitments
Other commitments and obligations(4)
Payments due by period
Total
2022
2023 - 2024
2025 - 2026
$
673 $
5,316
673 $
508
— $
— $
1,904
1,301
8
677
930
72
231
426
101
215
3
155
372
48
231
409
41
188
5
221
354
24
—
17
24
19
—
155
126
—
—
—
21
7
2027 and
thereafter
—
1,603
—
146
78
—
—
—
15
1
Total contractual cash obligations(5)
$
8,649 $
2,628 $
2,568 $
1,610 $
1,843
(1) Includes components of long-term debt attributable to unamortized premiums of $26 million and excludes components
of long-term debt attributable to fair value hedge accounting of $1 million.
46
2021 Bunge Annual Report
(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 $31 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
as a component of the prices we charge for our products. However, changes in the market value of such freight
services compared to the rates at which we have contracted them may affect margins on the sales of agricultural
commodities.
(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,
2021, Bunge had uncertain income tax liabilities of $81 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.
Employee Benefit Plans
We expect to contribute $21 million to our defined benefit pension plans and $4 million to our postretirement benefit
plans in 2022.
Critical Accounting Policies and Estimates
Our accounting policies are more fully described in Note 1- Nature of Business, Basis of Presentation and Significant
Accounting Policies to our consolidated financial statements included as part of this Annual Report on Form 10-K. As disclosed
in Note 1, the preparation of financial statements in conformity with U.S. GAAP requires management to make substantial
judgment or estimation in their application that may significantly affect reported amounts in the consolidated financial
statements and accompanying notes. Actual results could differ significantly from those estimates. We believe the following
discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our
financial condition and results of operations and require management's most difficult, subjective and complex judgments.
Offsetting
In the normal course of its operations we routinely enter into transactions resulting in the recognition of assets and
liabilities stemming from unconditional obligations, for example trade receivables and trade payables, or conditional
obligations, for example unrealized gains and losses on derivative contracts at fair value, with the same counterparty. We
generally record all such assets and liabilities on a gross basis, even when they are subject to master netting agreements.
However, we also engage in various trade structured finance activities to leverage the value of our global trade flows.
These activities include programs under which we generally obtain U.S. dollar-denominated letters of credit ("LCs") from
financial institutions, each based on an underlying commodity trade flow, 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. Trade
related payables are set-off against receivables under such arrangements when all related assets and liabilities are subject to
legally enforceable set-off agreements and the criteria of ASC 210-20, Offsetting, has been met. 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.
Translation of Foreign Currency Financial Statements
Our reporting currency is the U.S. dollar. The functional currency of the majority of our foreign subsidiaries is their local
currency. 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 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 are remeasured as if the functional
currency were the reporting currency.
47
2021 Bunge Annual Report
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 our consolidated statements of income as Foreign exchange gains (losses) - net unless the remeasurement gain or
loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is neither planned
nor anticipated in the foreseeable future, in which case the remeasurement gain or loss is reported as a component of
Accumulated other comprehensive loss in our consolidated balance sheets.
Inventories and Derivatives
Our RMI, forward RMI purchase and sale contracts, and exchange-traded futures and options are primarily valued at fair
value. RMI are freely-traded, have quoted market prices, may be sold without significant additional processing and have
predictable and insignificant disposal costs. We estimate the fair values of commodity inventories and forward purchase and
sale contracts on these inventories based on commodity futures exchange quotations, broker or dealer quotations, or market
transactions in either listed or over-the-counter ("OTC") markets with appropriate adjustments for differences in local markets
where our inventories are located. Certain inventories may utilize significant unobservable data related to local market
adjustments to determine fair value. The significant unobservable inputs for RMI and physically-settled forward purchase and
sale contracts relate to certain management estimates regarding transportation costs 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, we use proprietary information such as purchase and sale contracts and contracted prices to value
freight, premiums, and discounts in our contracts. Changes in the fair values of these inventories and contracts are recognized in
our consolidated statements of income as a component of Cost of goods sold. If we used different methods or factors to estimate
fair values, amounts reported as Inventories and Unrealized gains and losses on derivative contracts in the consolidated balance
sheets and Cost of goods sold in the consolidated statements of income, respectively, could differ. Additionally, if market
conditions change subsequent to year-end, amounts reported in future periods as Inventories, Unrealized gains and losses on
derivative contracts, and Cost of goods sold could differ.
Allowances for Uncollectible Accounts
Trade Accounts Receivable—Trade accounts receivable are stated at historical carrying amounts net of write-offs and
allowances for uncollectible accounts. We establish allowances for uncollectible trade accounts receivable based on lifetime
expected credit losses using an aging schedule for each pool of trade accounts receivable. Pools are determined based on risk
characteristics such as the type of customer and geography. A default rate is derived using a provision matrix based on Bunge's
historical receivables data. The default rate is then applied to the pool to determine the allowance for expected credit losses.
Given the short term nature of our trade accounts receivable, the default rate is only adjusted if significant changes in the credit
profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in
historic loss rates that are not representative of forecasted losses. Uncollectible accounts are written off when a settlement is
reached for an amount that is less than the outstanding historical balance or when we have determined that collection of the
balance is unlikely.
Specifically, in establishing appropriate default rates as of December 31, 2021, we took into consideration expected
impacts on our customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in
a material impact on our consolidated financial statements.
We record and report accrued interest receivable within the same line item as the related receivable. The allowance for
expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest
receivable. We recognize credit loss expense when establishing an allowance for accrued interest receivable.
Secured Advances to Suppliers—Secured advances to suppliers are stated at historical carrying amounts net of write-offs
and allowances for uncollectible accounts. Secured advances to suppliers are expected to be settled through delivery of non-
cash assets and as such, allowances are established when collection is not probable. We establish an allowance for secured
advances to suppliers, generally farmers and resellers of grain, based on historical experience, farming economics and other
market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is
reached for an amount below the outstanding historical balance or when we have determined that collection is unlikely.
Secured advances to suppliers bear interest at contractual rates that 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.
We follow 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, secured advances to suppliers are considered impaired, based on current information and events, if we
48
2021 Bunge Annual Report
determine 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.
Goodwill
When we acquire a business, the consideration is first assigned to identifiable assets and liabilities, including intangible
assets, based on estimated fair values, with any excess recorded as goodwill. Determining fair value requires significant
estimates and assumptions based on an evaluation of a number of factors, including market participants, projected growth rates,
the amounts and timing of future cash flows, and the discount rates applied to the cash flows. Determining the useful life of an
asset also requires significant judgment.
Our goodwill balance is not amortized to expense. Instead, it is tested for impairment at least annually. We generally
perform our annual impairment analysis during the fourth quarter. If events or indicators of impairment occur between annual
impairment analyses, we perform 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, we: (1) determine our reporting units; (2) allocate goodwill
to our various reporting units to which the acquired goodwill relates; (3) determine the carrying value, or book value, of our
reporting units; (4) estimate the fair value of each reporting unit using a discounted cash flow model and/or using market
multiples; (5) compare 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, we recognize an impairment charge for such amount, but not exceeding the total amount of
goodwill allocated to that reporting unit.
The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many
points during the analysis, including the identification of our reporting units, identification and allocation of the assets and
liabilities to each of our reporting units, and determination of fair value. In estimating the fair value of a reporting unit for the
purposes of our annual or periodic impairment analysis, we make estimates and significant judgments about the future cash
flows of that reporting unit aligned with management’s strategic business plans. Changes in judgment related to these
assumptions and estimates could result in goodwill impairment charges. We believe the assumptions and estimates used are
appropriate based on the information currently available to management. Estimates based on market earnings multiples of peer
companies identified for the reporting unit may also be used, where available. 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
throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a
high degree of judgment.
During the fourth quarters of 2021 and 2020, we performed our annual impairment assessment and determined the
estimated fair values of each of our goodwill reporting units exceeded each of their carrying values. See Note 8- Goodwill, to
our consolidated financial statements. Please refer to Note 10- Impairments to our consolidated financial statements for details
of goodwill impairment charges recorded in the three years ended December 31, 2021.
Property, Plant and Equipment and Other Finite-Lived Intangible Assets
Long-lived assets include property, plant and equipment and other finite-lived intangible assets. Property, plant and
equipment and finite-lived intangible assets are depreciated or amortized over their estimated useful life on a straight line basis.
When facts and circumstances indicate the carrying values of these assets may be impaired, an evaluation of recoverability is
performed by comparing the carrying value of the assets to the undiscounted projected future cash flows to be generated by
such assets from their use and ultimate disposal. If the carrying value of our assets is not recoverable, we recognize an
impairment loss in the amount that carrying value exceeds fair value. Impairment is recognized as a charge against results of
operations. Our judgments related to the expected useful lives of these assets and our ability to realize undiscounted cash flows
in excess of the carrying amount of such assets are affected by factors such as the ongoing maintenance of the assets, changes in
economic conditions and changes in operating performance. As we assess the ongoing expected cash flows and carrying
amounts of these assets, changes in these factors could cause us to realize material impairment charges. Please refer to Note 10-
Impairments to our consolidated financial statements for details of property, plant and equipment and other finite-lived
intangible asset impairment charges recorded in the three years ended December 31, 2021.
Contingencies
We are a party to a large number of claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-
income tax claims in Argentina, and we make provisions for potential liabilities arising from such claims when we deem them
probable and reasonably estimable. These estimates of probable loss have been developed in consultation with in-house and
outside counsel and are based on an analysis of potential results, assuming a combination of litigation and settlement strategies.
49
2021 Bunge Annual Report
Future results of operations for any particular quarterly or annual period could be materially affected by changes in our
assumptions or the effectiveness of our strategies relating to these proceedings. For more information on tax and labor claims in
Brazil, see "Item 3. Legal Proceedings" and Note 21- Commitments and Contingencies to our consolidated financial statements.
Income Taxes
We record valuation allowances to reduce our deferred tax assets to the amount that we are likely to realize. We consider
projections of future taxable income and prudent tax planning strategies to assess the need for and the amount of the valuation
allowances. If we determine that we can realize a deferred tax asset in excess of our net recorded amount, we decrease the
valuation allowance, thereby decreasing income tax expense. Conversely, if we determine that we are unable to realize all or
part of our net deferred tax asset, we increase the valuation allowance, thereby increasing income tax expense.
We apply a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly, we
recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement.
The calculation of our uncertain tax positions involves complexities in the application of intricate tax regulations in a multitude
of jurisdictions across our global operations. Future changes in judgment related to the ultimate resolution of unrecognized tax
benefits will affect the earnings in the quarter of such change. At December 31, 2021 and 2020, we had recorded uncertain tax
positions of $81 million and $52 million, respectively, in our consolidated balance sheets. For additional information on income
taxes, please refer to Note 14- Income Taxes to our consolidated financial statements included as part of this Annual Report on
Form 10-K.
Recoverable Taxes
We evaluate the collectability of our recoverable taxes and record allowances if we determine that collection is doubtful.
Recoverable taxes include value-added taxes paid upon the acquisition of property, plant and equipment, raw materials and
taxable services, as well as other transactional taxes, which can be recovered in cash or as compensation against income taxes,
or other taxes we may owe, primarily in Brazil and Europe. Management's assumption about the collectability of recoverable
taxes requires significant judgment because it involves an assessment of the ability and willingness of the applicable federal or
local government to refund the taxes. The balance of these allowances fluctuates depending on the sales activity of existing
inventories, purchases of new inventories, percentages of export sales, seasonality, changes in applicable tax rates, cash
payments by the applicable government agencies and the offset of outstanding balances against income or certain other taxes
owed to the applicable governments, where permissible. At December 31, 2021 and 2020, the allowance for recoverable taxes
was $44 million and $58 million, respectively. We continue to monitor the economic environment and events taking place in
the applicable countries and in cases where we determine that recovery is doubtful, recoverable taxes are reduced by allowances
for the estimated unrecoverable amounts.
New Accounting Pronouncements
See Note 1- Nature of Business, Basis of Presentation and Significant Accounting Policies to our consolidated financial
statements included as part of this Annual Report on Form 10-K.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Risk Management
As a result of our global activities, we are exposed to changes in, among other things, agricultural commodity prices,
transportation costs, foreign currency exchange rates, interest rates, energy costs, and inflationary pressures, which may affect
our results of operations and financial position. We actively monitor and manage these various market risks associated with our
business activities. Our risk management decisions take place in various locations, but exposure limits are centrally set and
monitored, operating under a global governance framework. Additionally, our Board of Directors' Enterprise Risk Management
Committee and our internal Management Risk Committee oversee our global market risk governance framework, including risk
management policies and limits.
We use derivative instruments for the purpose of managing the exposures associated with commodity prices,
transportation costs, foreign currency exchange rates, interest rates, energy costs, and for positioning our overall portfolio
relative to expected market movements in accordance with established policies and procedures. We enter into derivative
instruments primarily with commodity exchanges in the case of commodity futures and options, major financial institutions, or
approved exchange cleared shipping companies in the case of ocean freight. While these derivative instruments are subject to
fluctuations in value, for hedged exposures those fluctuations are generally offset by the changes in the fair value of the
underlying exposures. The derivative instruments that we use for hedging purposes are intended to reduce the volatility of our
results of operations. However, they can occasionally result in earnings volatility, which may be material. See Note 15- Fair
50
2021 Bunge Annual Report
Value Measurements and Note 16- Derivative Instruments and Hedging Activities to our consolidated financial statements
included as part of this Annual Report on Form 10-K for a more detailed discussion of our use of derivative instruments.
Credit and Counterparty Risk
Through our normal business activities, we are subject to significant credit and counterparty risks that arise through
commercial sales and purchases, including forward commitments to buy or sell, and through various OTC derivative
instruments that we use to manage risks inherent in our business activities. We define credit and counterparty risk as a potential
financial loss due to the failure of a counterparty to honor its obligations. The exposure is measured based upon several factors,
including unpaid accounts receivable from counterparties, as well as unrealized gains from forward purchase or sale contracts
and OTC derivative instruments. Credit and counterparty risk also includes sovereign credit risk. We actively monitor credit
and counterparty risk through a regular review of exposures and credit analysis by regional credit teams, as well as a review by
global and corporate committees that monitor counterparty performance. We record provisions for counterparty losses from
time to time as a result of our credit and counterparty analysis.
During periods of tight conditions in global credit markets, downturns in regional or global economic conditions, and/or
significant price volatility, credit and counterparty risks are heightened. This increased risk is monitored through, among other
things, exposure reporting, increased communication with key counterparties, management reviews, and specific focus on
counterparties or groups of counterparties that we may determine as high risk. We have reduced exposures and associated
position limits in certain cases, and also decreased our use of non-exchange cleared derivative instruments.
Commodities Risk
We operate in many areas of the food industry, from agricultural raw materials to the production and sale of branded food
products. As a result, we purchase and produce various materials, many of which are agricultural commodities, including:
soybeans, soybean oil, soybean meal, palm oil (from crude to various degrees of refined products), softseeds (including
sunflower seed, rapeseed and canola) and related oil and meal derived from them, wheat, barley, shea nut, and corn.
Agricultural commodities are subject to price fluctuations due to a number of unpredictable factors, including inflationary
pressures, that may create price risk. As described above, we are also subject to the risk of counterparty non-performance under
forward purchase and sale contracts. From time to time, we have experienced instances of counterparty non-performance as a
result of significant declines in counterparty profitability under these contracts due to movements in commodity prices between
the time the contracts were executed and the contractual forward delivery period.
We enter into various derivative contracts with the primary objective of managing our exposure to adverse price
movements in the agricultural commodities used and produced in our business operations. We have established policies that
limit the amount of unhedged fixed price agricultural commodity positions permissible for our operating companies, which are
generally a combination of volumetric, drawdown, and value-at-risk ("VaR") limits. We measure and review our commodity
positions on a daily basis. We also employ stress-testing techniques in order to quantify our exposures to price and liquidity
risks under non-normal or event driven market conditions.
Our daily net agricultural commodity position consists of inventory, forward purchase and sale contracts, and OTC and
exchange-traded derivative instruments, including those used to hedge portions of our production requirements. The fair value
of that position is a summation of the fair values of each agricultural commodity, calculated by valuing all of our commodity
positions for the period at quoted market prices, where available, or by utilizing a close proxy. VaR is calculated on the net
position and monitored at the 95% confidence interval. In addition, scenario analysis and stress testing are performed. For
example, one measure of market risk is estimated as the potential loss in fair value resulting from a hypothetical 10% adverse
change in prices. The results of this analysis, which may differ from actual results, are as follows:
(US$ in millions)
Highest daily aggregated position value
Lowest daily aggregated position value
Year Ended
December 31, 2021
Year Ended
December 31, 2020
Fair Value
Market Risk
Fair Value
Market Risk
$
$
1,706 $
(171) $
1,374 $
(3) $
— $
54 $
(137)
(5)
51
2021 Bunge Annual Report
Ocean Freight Risk
Ocean freight represents a significant portion of our operating costs. The market price for ocean freight varies depending
on the supply and demand for ocean vessels, global economic conditions, inflationary pressure, and other factors. We enter into
time charter agreements for time on ocean freight vessels based on forecasted requirements for the purpose of transporting
agricultural commodities. Our time charter agreements generally have terms ranging from two months to approximately three
years. We use financial derivatives, generally freight forward agreements, to hedge portions of our ocean freight costs. The
ocean freight derivatives are included in Other current assets and Other current liabilities on the consolidated balance sheets at
fair value.
Energy Risk
We purchase various energy commodities such as electricity, natural gas and bunker fuel, which are used to operate our
manufacturing facilities and ocean freight vessels. These energy commodities are subject to price risk, including inflationary
pressures. We use financial derivatives, including exchange traded and OTC swaps and options for various purposes, to manage
our exposure to volatility in energy costs and market prices. These energy derivatives are included in other current assets and
other current liabilities on the consolidated balance sheets at fair value.
Currency Risk
Our global operations require active participation in foreign exchange markets. Our primary foreign currency exposures
are the Brazilian real, Canadian dollar, the Euro, and the Chinese yuan/renminbi. To reduce the risk arising from foreign
exchange rate fluctuations, we enter into derivative instruments, such as foreign currency forward contracts, swaps and options.
The changes in market value of such contracts have a high correlation to the price changes in the related currency exposures.
The potential loss in fair value of such net currency positions resulting from a hypothetical 10% adverse change in foreign
currency exchange rates as of December 31, 2021 was not material.
When determining our exposure, we exclude intercompany loans that are deemed to be permanently invested.
Repayments of permanently invested intercompany loans are neither planned nor anticipated in the foreseeable future and are
therefore treated as analogous to equity for accounting purposes. As a result, foreign exchange gains and losses on these
borrowings are excluded from the determination of Net income (loss) and recorded as a component of Accumulated other
comprehensive loss in the consolidated balance sheets. Included in Other comprehensive income (loss) are foreign currency
losses of $74 million for the year ended December 31, 2021 and foreign currency losses of $140 million for the year ended
December 31, 2020 related to permanently invested intercompany loans.
Interest Rate Risk
We have debt in fixed and floating rate instruments. We are exposed to market risk due to changes in interest rates,
including inflationary pressures. We may enter into interest rate swap agreements to manage our interest rate exposure related
to our debt portfolio.
The aggregate fair value of our short and long-term debt, based on market yields at December 31, 2021, was $6,162
million with a carrying value of $5,964 million.
A hypothetical 100 basis point increase in the interest yields on our senior note debt at December 31, 2021 would result
in a decrease of approximately $40 million in the fair value of our debt. Similarly, a decrease of 100 basis points in the interest
yields on our senior debt at December 31, 2021 would cause an increase of approximately $40 million in the fair value of our
debt.
A hypothetical 100 basis point change in LIBOR would result in a change of approximately $52 million in our interest
expense on our variable rate debt at December 31, 2021. Some of our variable rate debt is denominated in currencies other than
U.S. dollars and is indexed to non-U.S. dollar-based interest rate indices, such as EURIBOR and TLP, and certain benchmark
rates in local bank markets. As such, the hypothetical 100 basis point change in interest rate ignores the potential impact of any
currency movements. See "Risk Factors - We are a capital intensive business and depend on cash provided by our operations
as well as access to external financing to operate and grow our business" for a discussion of certain risks related to LIBOR.
Inflation Risk
Inflationary factors generally affect us by increasing our labor and overhead costs, as well as costs related to those items
associated with certain risks identified above, which may adversely affect our results of operations and financial position. We
have historically been able to recover the impacts of inflation through sales price increases, however we cannot reasonably
estimate our ability to successfully recover any impact of inflation through price increases in the future. Our inability to do so
could harm our results of operations and financial position.
52
2021 Bunge Annual Report
Derivative Instruments
Foreign Exchange Derivatives—We use a combination of foreign exchange forward, swap, future and option contracts in
certain of our operations to mitigate the risk of exchange rate fluctuations in connection with certain commercial and balance
sheet exposures. The foreign exchange forward swap and option contracts may be designated as cash flow or fair value hedges.
We may also use net investment hedges to partially offset the translation adjustments arising from the remeasurement of our
investment in certain of our foreign subsidiaries.
We assess, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedge
transactions are highly effective in offsetting changes in the hedged items.
Interest Rate Derivatives—We may enter into interest rate swap agreements for the purpose of managing certain of our
interest rate exposures. Interest rate swaps used by us as hedging instruments are recorded at fair value in the consolidated
balance sheets with changes in fair value recorded contemporaneously in earnings. Certain of these agreements may be
designated as fair value hedges. In such instances, the carrying amount of the associated hedged debt is also adjusted through
earnings for changes in fair value arising from changes in benchmark interest rates. We may also enter into interest rate basis
swap agreements that do not qualify as hedges for accounting purposes. The impact of changes in fair value of interest rate
swap agreements is primarily presented in interest expense.
Commodity Derivatives—We primarily use derivative instruments to manage our exposure to movements associated with
agricultural commodity prices. We generally use exchange-traded futures and options contracts to minimize the effects of
changes in the prices of agricultural commodities held as inventories or subject to forward purchase and sale contracts, but may
also enter into OTC commodity transactions, including swaps, which are settled in cash at maturity or termination based on
exchange-quoted futures prices. Changes in fair values of exchange-traded futures contracts, representing the unrealized gains
and/or losses on these instruments, are settled daily, generally through our 100% owned futures clearing subsidiary. Forward
purchase and sale contracts are primarily settled through delivery of agricultural commodities. While we consider these
exchange-traded futures and forward purchase and sale contracts to be effective economic hedges, we do not designate or
account for the majority of our commodity contracts as hedges. Changes in fair values of these contracts and related RMI are
included in Cost of goods sold in the consolidated statements of income. The forward contracts require performance of both us
and the contract counterparty in future periods. 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.
Ocean Freight Derivatives—We use derivative instruments referred to as freight forward agreements, or FFAs, and FFA
options to hedge portions of our current and anticipated ocean freight costs. Changes in the fair values of ocean freight
derivatives are recorded in Cost of goods sold.
Energy Derivatives—We use derivative instruments for various purposes, including to manage our exposure to volatility
in energy costs and our exposure to market prices related to the sale of biofuels. Our operations use substantial amounts of
energy, including natural gas, coal and fuel oil, including bunker fuel. Changes in the fair values of energy derivatives are
recorded in Cost of goods sold.
Other Derivatives—We may also enter into other derivatives, including credit default swaps and equity derivatives, to
manage our 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.
For more information, see Note 16- Derivative Instruments and Hedging Activities to our consolidated financial
statements included as part of this Annual Report on Form 10-K.
Item 8. Financial Statements and Supplementary Data
Our financial statements and related schedule required by this item are contained on pages F-1 through F-68 and on
page E-1 included as part of this Annual Report on Form 10-K. See Item 15(a) for a listing of financial statements provided.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
53
2021 Bunge Annual Report
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
As of December 31, 2021, we carried out an evaluation, under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and
operation of our "disclosure controls and procedures," as that term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e).
Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure
controls and procedures were effective at a reasonable assurance level as of the end of the fiscal year covered by this Annual
Report on Form 10-K.
Management's Report on Internal Control over Financial Reporting
Bunge Limited's management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rules 13a-15(f). Bunge Limited's internal control over financial reporting is
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with U.S. Generally Accepted Accounting Principles.
Under the supervision and with the participation of management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of the end
of the fiscal year covered by this annual report based on the framework in Internal Control—Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on this assessment, management concluded that Bunge Limited's internal control over financial reporting was
effective as of the end of the fiscal year covered by this annual report.
Deloitte & Touche LLP, the independent registered public accounting firm that has audited and reported on Bunge
Limited's consolidated financial statements included in this annual report, has issued its written attestation report on Bunge
Limited's internal control over financial reporting, which is included in this Annual Report on Form 10-K.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting during the fourth fiscal quarter ended
December 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial
reporting. However, we continue to migrate certain processes to shared business service models from across our operations in
order to consolidate functions while standardizing our processes and financial systems globally. In connection with these
initiatives, we have and will continue to align and streamline the design and operation of our internal controls over financial
reporting. These initiatives are not in response to any identified deficiency or weakness in our internal controls over financial
reporting but are expected over time to result in changes to such internal controls over financial reporting.
Inherent Limitations on Effectiveness of Controls
Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect that our
disclosure controls or our internal control over financial reporting will prevent or detect all errors and all fraud. A control
system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control
system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems,
no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all
control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the
realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.
Controls may also be circumvented by the individual acts of some persons, by collusion of two or more people or by
management override of controls. The design of any system of controls is based in part on certain assumptions about the
likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all
potential future conditions. Projections of any evaluation of control effectiveness to future periods are subject to risks. Over
time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with
policies or procedures.
54
2021 Bunge Annual Report
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Bunge Limited
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Bunge Limited and subsidiaries (the "Company") as of December 31,
2021, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2021, based on the criteria established in Internal Control-Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our report dated February 24,
2022, expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over
Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of the inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of the effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP
St. Louis, Missouri
February 24, 2022
55
2021 Bunge Annual Report
Item 9B. Other Information
None.
Information required by Items 10, 11, 12, 13 and 14 of Part III is omitted from this Annual Report on Form 10-K and will
be filed in a definitive proxy statement for our 2022 Annual General Meeting of Shareholders.
PART III
Item 10. Directors, Executive Officers, and Corporate Governance
We will provide information that is responsive to this Item 10 in our definitive proxy statement for our 2022 Annual
General Meeting of Shareholders under the captions "Election of Directors," "Section 16(a) Beneficial Ownership Reporting
Compliance," "Corporate Governance-Board Meetings and Committees-Audit Committee," "Corporate Governance-Board
Composition and Independence," "Audit Committee Report," "Corporate Governance-Corporate Governance Guidelines and
Code of Conduct" and possibly elsewhere therein. That information is incorporated in this Item 10 by reference. The
information required by this item with respect to our executive officers and key employees is found in Part I of this Annual
Report on Form 10-K under the caption "Item 1. Business-Executive Officers and Key Employees of the Company," which
information is incorporated herein by reference.
Item 11. Executive Compensation
We will provide information that is responsive to this Item 11 in our definitive proxy statement for our 2022
Annual General Meeting of Shareholders under the captions "Executive Compensation," "Director Compensation,"
"Compensation Committee Report," and possibly elsewhere therein. That information is incorporated in this Item 11 by
reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
We will provide information that is responsive to this Item 12 in our definitive proxy statement for our 2022 Annual
General Meeting of Shareholders under the caption "Share Ownership of Directors, Executive Officers and Principal
Shareholders" and possibly elsewhere therein. That information is incorporated in this Item 12 by reference. The
information required by this item with respect to our equity compensation plan information is found in Part II of this Annual
Report on Form 10-K under the caption "Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities-Securities Authorized for Issuance Under Equity Compensation Plans," which
information is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
We will provide information that is responsive to this Item 13 in our definitive proxy statement for our 2022 Annual
General Meeting of Shareholders under the captions "Corporate Governance-Board Composition and Independence,"
"Certain Relationships and Related Party Transactions" and possibly elsewhere therein. That information is incorporated
in this Item 13 by reference.
Item 14. Principal Accounting Fees and Services
We will provide information that is responsive to this Item 14 in our definitive proxy statement for our 2022 Annual
General Meeting of Shareholders under the caption "Appointment of Independent Auditor" and possibly elsewhere therein.
That information is incorporated in this Item 14 by reference.
56
2021 Bunge Annual Report
Item 15. Exhibits, Financial Statement Schedules
a.
(1) (2) Financial Statements and Financial Statement Schedules
PART IV
See "Index to Consolidated Financial Statements" on page F-1 and Financial Statement Schedule II—Valuation and
Qualifying Accounts on page E-1 of this Annual Report on Form 10-K.
a.
(3) Exhibits
The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as part of this Form 10-K.
Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the
agreements that have been made solely for the benefit of the parties to the agreement, which may have been included in the
agreement for the purpose of allocating risk between the parties rather than establishing matters as facts and may have been
qualified by disclosures that were made to the parties in connection with the negotiation of these agreements and not
necessarily reflected in the agreements. Accordingly, the representations and warranties contained in these agreements may
not describe the actual state of affairs of Bunge Limited or its subsidiaries as of the date that these representations and
warranties were made or at any other time. Investors should not rely on these representations and warranties as statements
of fact. Additional information about Bunge Limited and its subsidiaries may be found elsewhere in this Annual Report on
Form 10-K and Bunge Limited's other public filings, which are available without charge through the SEC's website at
www.sec.gov.
See "Index to Exhibits" set forth below.
Exhibit
Number
3.1
Memorandum of Association (incorporated by reference from the Registrant's Form F-1 (No. 333-65026) filed
July 13, 2001)
Description
3.2
Certificate of Deposit of Memorandum of Increase of Share Capital (incorporated by reference from the
3.3
4.1
Registrant's Form 10-Q filed August 11, 2008)
Bye-laws, amended and restated as of May 25, 2016 (incorporated by reference from the Registrant's Form
10-K filed on February 28, 2017)
Form of Common Share Certificate (incorporated by reference from the Registrant's Form 10-K filed March 3,
2008)
4.2
Certificate of Designation of 4.875% Cumulative Convertible Perpetual Preference Shares (incorporated by
4.3
4.4
reference from the Registrant's Form 8-K filed November 20, 2006)
Form of 4.875% Cumulative Convertible Perpetual Preference Share Certificate (incorporated by reference from
the Registrant's Form 8-K filed November 20, 2006)
The instruments defining the rights of holders of the long-term debt securities of Bunge and its subsidiaries are
omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Bunge hereby agrees to furnish copies of these
instruments to the Securities and Exchange Commission upon request
4.5 *
Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
10.1
10.2
10.3
10.4
Sixth Amended and Restated Pooling Agreement, dated as of August 31, 2020, among Bunge Funding Inc.,
Bunge Management Services Inc., as Servicer, and The Bank of New York, as Trustee (incorporated by
reference from the Registrant’s Form 10-K filed February 19, 2021)
Fifth Amended and Restated Series 2000-1 Supplement, dated as of June 28, 2004, among Bunge Funding Inc.,
Bunge Management Services, Inc., as Servicer, Coöperatieve Rabobank U.A. (f/k/a Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.), as Letter of Credit Agent, JPMorgan Chase Bank, as Administrative Agent,
The Bank of New York Mellon, as Collateral Agent and Trustee, and Bunge Asset Funding Corp., as
Series 2000-1 Purchaser (incorporated by reference from the Registrant's Form 10-K filed February 27, 2012)
Credit Agreement, dated October 29, 2021, among Bunge Limited Finance Corp., as Borrower, CoBank ACB, as
Administrative Agent and Lead Arranger, and certain lenders party thereto (incorporated by reference from the
Registrant’s Form 8-K filed on November 1, 2021)
Guaranty, dated as of October 29, 2021, between Bunge Limited, as Guarantor, and CoBank ACB, as
Administrative Agent (incorporated by reference from the Registrant’s Form 8-K filed on November 1, 2021)
57
2021 Bunge Annual Report
Exhibit
Number
10.5
10.6
10.7
10.8
10.9
10.10
10.11
10.12
10.13
10.14
10.15 *
Description
Eighth Amendment to and Restatement of the Receivables Transfer Agreement, dated May 26, 2016, among
Bunge Securitization B.V., as Seller, Koninklijke Bunge B.V. (f/k/a Bunge Finance B.V.), as Master Servicer,
the persons from time to time party thereto as Conduit Purchasers, the persons from time to time party thereto as
Committed Purchasers, the persons from time to time party thereto as Purchaser Agents, Coöperatieve
Rabobank U.A. (f/k/a Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.), as Administrative Agent and
Purchaser Agent, and Bunge Limited, as Performance Undertaking Provider (incorporated by reference from the
Registrant's Form 10-Q filed on July 28, 2016)
Ninth Amendment to the Receivables Transfer Agreement, dated June 30, 2016, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, the persons from time to time party
thereto as Conduit Purchasers, the persons from time to time party thereto as Committed Purchasers, the persons
from time to time party thereto as Purchaser Agents, Coöperatieve Rabobank U.A., as Administrative Agent and
Purchaser Agent, and Bunge Limited, as Performance Undertaking Provider (incorporated by reference from the
Registrant's Form 10-Q filed on July 28, 2016)
Tenth Amendment to the Receivables Transfer Agreement, dated October 11, 2016, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, the persons from time to time party
thereto as Conduit Purchasers, the persons from time to time party thereto as Committed Purchasers, the persons
from time to time party thereto as Purchaser Agents, Coöperatieve Rabobank U.A., as Administrative Agent and
Purchaser Agent, and Bunge Limited, as Performance Undertaking Provider (incorporated by reference from the
Registrant's Form 10-K filed on February 28, 2017)
Eleventh Amendment to the Receivables Transfer Agreement, dated May 31, 2017, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, the persons from time to time party
thereto as Conduit Purchasers, the persons from time to time party thereto as Committed Purchasers, the persons
from time to time party thereto as Purchaser Agents, Coöperatieve Rabobank U.A., as Administrative Agent and
Purchaser Agent, and Bunge Limited, as Performance Undertaking Provider (incorporated by reference from the
Registrant's Form 10-K filed on February 23, 2018)
Twelfth Amendment to the Receivables Transfer Agreement, dated October 31, 2017, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, the persons from time to time party
thereto as Conduit Purchasers, the persons from time to time party thereto as Committed Purchasers, the persons
from time to time party thereto as Purchaser Agents, Coöperatieve Rabobank U.A., as Administrative Agent and
Purchaser Agent, and Bunge Limited, as Performance Undertaking Provider (incorporated by reference from the
Registrant's Form 10-K filed on February 23, 2018)
Thirteenth Amendment to the Receivables Transfer Agreement, dated January 12, 2018, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers
Fourteenth Amendment to the Receivables Transfer Agreement, dated February 19, 2019, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers
Fifteenth Amendment to the Receivables Transfer Agreement, dated May 29, 2019, among Bunge Securitization
B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance Undertaking
Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and Purchaser
Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit Purchasers
(incorporated by reference from the Registrant’s Form 10-K filed on February 19, 2021)
Sixteenth Amendment to the Receivables Transfer Agreement, dated August 27, 2019, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers (incorporated by reference from the Registrant’s Form 10-K filed on February 19, 2021)
Seventeenth Amendment to the Receivables Transfer Agreement, dated May 5, 2020, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers (incorporated by reference from the Registrant’s Form 10-K filed on February 19, 2021)
Eighteenth Amendment to the Receivables Transfer Agreement, dated April 21, 2021, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers
58
2021 Bunge Annual Report
Exhibit
Number
10.16
10.17
10.18
10.19
10.20
10.21
10.22
10.23
10.24
10.25
10.26
Description
Nineteenth Amendment to the Receivables Transfer Agreement, dated May 17, 2021, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers (incorporated by reference from the Registrant’s Form 8-K filed on May 17, 2021)
Fourth Amended and Restated Receivables Transfer Agreement, among Bunge Securitization B.V., as Seller,
Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance Undertaking Provider, and
Coöperatieve Rabobank U.A., as Administrative Agent and Purchaser Agent, dated May 17, 2021 (incorporated
by reference from the Registrant's Form 8-K filed May 17, 2021)
Twentieth Amendment to the Receivables Transfer Agreement, dated October 6, 2021, among Bunge
Securitization B.V., as Seller, Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance
Undertaking Provider, and Coöperatieve Rabobank U.A., as Administrative Agent, Committed Purchaser and
Purchaser Agent on behalf of the other Committed Purchasers, the other Purchaser Agents and the Conduit
Purchasers (incorporated by reference from the Registrant’s Form 10-Q filed on October 27, 2021)
Fifth Amended and Restated Receivables Transfer Agreement, among Bunge Securitization B.V., as Seller,
Koninklijke Bunge B.V., as Master Servicer, Bunge Limited, as Performance Undertaking Provider, and
Coöperatieve Rabobank U.A., as Administrative Agent and Purchaser Agent, dated October 18,
2021(incorporated by reference from the Registrant’s Form 10-Q filed on October 27, 2021)
Amendment to and Restatement of the Servicing Agreement, dated May 26, 2016, among Bunge
Securitization B.V., as Seller, Bunge North America Capital, Inc., as U.S. Intermediate Transferor,
Coöperatieve Rabobank U.A., as Italian Intermediate Transferor, Koninklijke Bunge B.V., as Master Servicer,
the persons named therein as Sub-Servicers, the persons named therein as Committed Purchasers, and
Coöperatieve Rabobank U.A., as Administrative Agent (incorporated by reference from the Registrant's
Form 10-K filed on February 28, 2017)
Second Amendment to the Servicing Agreement, dated June 30, 2016, among Bunge Securitization B.V., as
Seller, Bunge North America Capital, Inc., as U.S. Intermediate Transferor, Coöperatieve Rabobank U.A., as
Italian Intermediate Transferor, Koninklijke Bunge B.V., as Master Servicer, the persons named therein as Sub-
Servicers, the persons named therein as Committed Purchasers, and Coöperatieve Rabobank U.A., as
Administrative Agent (incorporated by reference from the Registrant’s Form 10-K filed on February 19, 2021)
Third Amendment to the Servicing Agreement, dated February 19, 2019, among Bunge Securitization B.V., as
Seller, Bunge North America Capital, Inc., as U.S. Intermediate Transferor, Coöperatieve Rabobank U.A., as
Italian Intermediate Transferor, Koninklijke Bunge B.V., as Master Servicer, the persons named therein as Sub-
Servicers, the persons named therein as Committed Purchasers, and Coöperatieve Rabobank U.A., as
Administrative Agent (incorporated by reference from the Registrant’s Form 10-K filed on February 19, 2021)
Performance and Indemnity Agreement, dated June 1, 2011, between Bunge Limited, as Performance
Undertaking Provider and Coöperatieve Rabobank U.A. (f/k/a Coöperatieve Centrale Raiffeisen-
Boerenleenbank B.A.), as Administrative Agent (incorporated by reference from the Registrant's Form 10-Q
filed on August 9, 2011)
First Amendment to Performance and Indemnity Agreement, dated May 24, 2012, between Bunge Limited, as
Performance Undertaking Provider and Coöperatieve Rabobank U.A. (f/k/a Coöperatieve Centrale Raiffeisen-
Boerenleenbank B.A.), as Administrative Agent (incorporated by reference from the Registrant's Form 10-Q
filed on August 1, 2012)
Subordinated Loan Agreement, dated June 1, 2011, among Koninklijke Bunge B.V. (f/k/a Bunge
Finance B.V.), as Subordinated Lender, Bunge Securitization B.V., as Seller, Koninklijke Bunge B.V. (f/k/a
Bunge Finance B.V.), as Master Servicer, and Coöperatieve Rabobank U.A. (f/k/a Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.), as Administrative Agent (incorporated by reference from the Registrant's
Form 10-Q filed on August 9, 2011)
First Amendment to the Subordinated Loan Agreement, dated August 27, 2019, among Koninklijke Bunge
B.V. (f/k/a Bunge Finance B.V.), as Subordinated Lender, Bunge Securitization B.V., as Seller, Koninklijke
Bunge B.V. (f/k/a Bunge Finance B.V.) as Master Servicer, and Coöperatieve Rabobank U.A. (f/k/a
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.), as Administrative Agent (incorporated by reference
from the Registrant’s Form 10-K filed on February 19, 2021)
10.27 ++ U.S. Receivables Purchase Agreement, dated June 1, 2011, among Bunge North America, Inc., Bunge
Oils, Inc., Bunge North America (East), LLC, Bunge Milling, Inc., Bunge North America (OPD West), Inc.,
each as a Seller, respectively, Bunge Finance B.V., as Seller Agent, and Bunge North America Capital, Inc., as
the Buyer (incorporated by reference from the Registrant's Form 10-Q filed on August 9, 2011)
59
2021 Bunge Annual Report
Exhibit
Number
10.28
10.29
Description
First Amendment to U.S. Receivables Purchase Agreement, dated June 15, 2012, among Bunge North
America, Inc., Bunge Oils, Inc., Bunge North America (East), LLC, Bunge Milling, Inc., Bunge North America
(OPD West), Inc., each as a Seller, respectively, Bunge Finance B.V., as Seller Agent, and Bunge North
America Capital, Inc., as the Buyer (incorporated by reference from the Registrant's Form 10-Q filed on
August 1, 2012)
Second Amendment to the U.S. Receivables Purchase Agreement, dated June 30, 2016, among Bunge North
America, Inc., Bunge Oils, Inc., Bunge North America (East), LLC, Bunge Milling, Inc., Bunge North America
(OPD West), Inc., each as a Seller, respectively, Koninklijke Bunge B.V., as Seller Agent, Bunge North
America Capital, Inc., as the Buyer, and Coöperatieve Rabobank U.A., as Administrative Agent (incorporated
by reference from the Registrant's Form 10-K filed on February 28, 2017)
10.30 ++ U.S. Intermediate Transfer Agreement, dated June 1, 2011, among Bunge North America Capital, Inc., as the
Transferor, Bunge Finance B.V., as the Transferor Agent, and Bunge Securitization B.V., as the Transferee
(incorporated by reference from the Registrant's Form 10-Q filed on August 9, 2011)
10.31
10.32
10.33
10.34
10.35
10.36
10.37
10.38
10.39
10.40 +
10.41 +
10.42 +
10.43 +
First Amendment to U.S. Intermediate Transfer Agreement, dated June 15, 2012, among Bunge North America
Capital, Inc., as the Transferor, Bunge Finance B.V., as Transferor Agent, and Bunge Securitization B.V., as
the Transferee (incorporated by reference from the Registrant's Form 10-Q filed on August 1, 2012)
Fifth Amended and Restated Pre-Export Financing Agreement, dated November 6, 2020, among the Pre-
Export Borrowers party thereto, the Pre-Export Lenders party thereto, Sumitomo Mitsui Banking
Corporation, as Pre-Export Administrative Agent, and Banco Rabobank International Brasil S.A., as Pre-
Export Collateral Agent (incorporated by reference from the Registrant's Form 10-K filed on February 19,
2021)
Thirteenth Amended and Restated Liquidity Agreement, dated as of December 14, 2018, among Bunge
Asset Funding Corp., the financial institutions party thereto, Citibank, N.A., as Syndication Agent, BNP
Paribas, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association,
as Co-Documentation Agents, and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated
by reference from the Registrant's Form 8-K filed December 17, 2018)
Fourteenth Amended and Restated Liquidity Agreement, dated as of July 16, 2021, among Bunge Asset
Funding Corp., the financial institutions party thereto, Citibank, N.A., as Syndication Agent, BNP Paribas,
Coöperatieve Rabobank, U.A., New York Branch, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation
and U.S. Bank National Association, as Co-Documentation Agents, and JPMorgan Chase Bank, N.A., as
Administrative Agent (incorporated by reference from the Registrant's Form 8-K filed on July 19, 2021)
Tenth Amended and Restated Guaranty, dated as of July 16, 2021, by Bunge Limited, as Guarantor, to
Coöperatieve Rabobank U.A., New York Branch, in its capacity as Letter of Credit Agent, and the Letter of
Credit Banks named therein, JPMorgan Chase Bank, N.A., as Administrative Agent under the Liquidity
Agreement, and The Bank of New York Mellon, as Collateral Agent under the Security Agreement and
Trustee under the Pooling Agreement (incorporated by reference from the Registrant's Form 8-K filed on July
19, 2021)
Annex X, dated as of July 16, 2021 (incorporated by reference from the Registrant's Form 8-K filed on July 19,
2021)
Revolving Credit Agreement, dated as July 16, 2021, among Bunge Limited Finance Corp., as Borrower,
Citibank, N.A., as Syndication Agent, BNP Paribas, Coöperatieve Rabobank U.A., New York Branch,
Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as Co-
Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, and certain lenders party
thereto (incorporated by reference from the Registrant's Form 8-K filed on July 19, 2021)
Guaranty, dated as of July 16, 2021, by Bunge Limited, as Guarantor, to JPMorgan Chase Bank, N.A., as
Administrative Agent under the Revolving Credit Agreement (incorporated by reference from the Registrant's
Form 8-K filed on July 19, 2021)
Bunge Limited Equity Incentive Plan (Amended and Restated as of December 31, 2008) (incorporated by
reference from the Registrant's Form 10-K filed March 2, 2009)
Form of Nonqualified Stock Option Award Agreement (effective as of 2005) under the Bunge Limited Equity
Incentive Plan (incorporated by reference from the Registrant's Form 10-K filed March 15, 2006)
Bunge Limited 2009 Equity Incentive Plan (incorporated by reference from the Registrant's Definitive Proxy
Statement filed April 11, 2014)
Form of Nonqualified Stock Option Award Agreement under the 2009 Bunge Limited Equity Incentive Plan
(incorporated by reference from the Registrant's Form 10-K filed March 1, 2011)
Form of Restricted Stock Unit Award Agreement under the 2009 Bunge Limited Equity Incentive Plan
(incorporated by reference from the Registrant's Form 10-K filed March 1, 2011)
60
2021 Bunge Annual Report
Exhibit
Number
10.44 +
10.45 +
10.46 +
10.47 +
10.48 +
10.49 +
10.50 +
10.51 +
10.52 +
10.53 +
10.54 +
10.55 +
10.56 +
10.57 +
10.58 +
10.59 +
10.60 +
Description
Form of Performance-Based Restricted Stock Unit-Target EPS Award Agreement under the 2009 Bunge
Limited Equity Incentive Plan (incorporated by reference from the Registrant's Form 10-K filed March 1, 2011)
Bunge Limited 2016 Equity Incentive Plan (incorporated by reference from the Registrant's Definitive Proxy
Statement filed April 15, 2016)
Form of Global Stock Option Agreement under the 2016 Bunge Limited Equity Incentive Plan (incorporated by
reference from the Registrant's Form 10-K filed February 28, 2017)
Form of Global Restricted Stock Unit Agreement under the 2016 Bunge Limited Equity Incentive Plan (for
RSUs subject to pro rata vesting) (incorporated by reference from the Registrant's Form 10-K filed February 28,
2017)
Form of Global Restricted Stock Unit Agreement under the 2016 Bunge Limited Equity Incentive Plan (for
RSUs subject to cliff vesting) (incorporated by reference from the Registrant's Form 10-K filed February 28,
2017)
Form of Global Performance Unit Agreement under the 2016 Bunge Limited Equity Incentive Plan
(incorporated by reference from the Registrant's Form 10-K filed February 28, 2017)
Bunge Limited 2017 Non-Employee Director Equity Incentive Plan, as Amended and Restated (incorporated by
reference from Appendix B to the Registrant’s proxy statement on Schedule 14A, filed on March 23, 2021)
Form of Restricted Stock Unit Award Agreement under the Bunge Limited 2017 Non-Employee Directors
Equity Incentive Plan (incorporated by reference from the Registrant's Form 10-K filed February 23, 2018
Bunge Excess Benefit Plan (Amended and Restated as of January 1, 2009) (incorporated by reference from the
Registrant's Form 10-K filed March 2, 2009)
Bunge Excess Contribution Plan (Amended and Restated as of January 1, 2009) (incorporated by reference
from the Registrant's Form 10-K filed March 2, 2009)
Bunge U.S. SERP (Amended and Restated as of January 1, 2011) (incorporated by reference from the
Registrant's Form 10-K filed March 1, 2011)
Bunge Limited Employee Deferred Compensation Plan (effective January 1, 2008) (incorporated by reference
from the Registrant's Form 10-K filed March 2, 2009)
Bunge Limited Annual Incentive Plan (effective January 1, 2011) (incorporated by reference from the
Registrant's Definitive Proxy Statement filed April 16, 2010)
Description of Non-Employee Directors' Compensation (effective as of January 1, 2014) (incorporated by
reference from the Registrant's Form 10-K filed on February 28, 2014)
Form of Executive Change of Control Agreement (incorporated by reference from the Registrant’s Form 10-Q
filed November 1, 2017)
Employment Agreement, dated as of April 25, 2019, between Bunge Limited and Gregory A. Heckman
(incorporated by reference from the Registrant's Form 8-K filed on April 26, 2019)
Employment Offer Letter, dated May 7, 2019, from Bunge Limited to John W. Neppl (incorporated by
reference from the Registrant’s Form 10-Q filed on July 31, 2019)
10.61 * + Amendment to Employment Agreement, dated as of November 17, 2021, between Bunge Limited and Brian J.
Zachman
10.62 +++ Facility Agreement, dated December 16, 2021, among Bunge Finance Europe B.V., as Borrower, BNP Paribas,
Crédit Agricole Corporate and Investment Bank, ING Bank N.V., Natixis and SMBC Bank International Plc as
Arrangers, BNP Paribas, as Sustainability Co-ordinator, Natixis, as Lead Sustainability Co-ordinator, and
Crédit Agricole Corporate and Investment Bank, as Agent, and certain lenders party thereto (incorporated by
reference from the Registrant’s Form 8-K filed on December 16, 2021)
Guaranty of Bunge Limited, as Guarantor, to Crédit Agricole Corporate and Investment Bank, as Agent under
the Facility Agreement, dated as of December 16, 2021 (incorporated by reference from the Registrant’s Form
8-K filed on December 16, 2021)
10.63
10.64
10.65
Revolving Credit Agreement, dated July 16, 2021, among Bunge Limited Finance Corp., as Borrower,
Sumitomo Mitsui Banking Corporation, as Syndication Agent, BNP Paribas, Citibank, N.A., Natixis, New
York Branch, and U.S. Bank National Association, as Co-Documentation Agents, Coöperatieve Rabobank
U.A., New York Branch, as Administrative Agent, and certain lenders party thereto (incorporated by reference
from the Registrant’s Form 8-K filed on July 19, 2021)
Guaranty by Bunge Limited, as Guarantor, to Coöperatieve Rabobank U.A., New York Branch, as
Administrative Agent, pursuant to the Revolving Credit Agreement, dated July 16, 2021 (incorporated by
reference from the Registrant’s Form 8-K filed on July 19, 2021)
61
2021 Bunge Annual Report
Exhibit
Number
Description
21.1 * Subsidiaries of the Registrant
22.1 * Subsidiary Issuers of Guaranteed Securities
23.1 * Consent of Deloitte & Touche LLP
31.1 * Certification of Bunge Limited's Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act
31.2 * Certification of Bunge Limited's Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act
32.1 ** Certification of Bunge Limited's Chief Executive Officer pursuant to Section 906 of the Sarbanes Oxley Act
32.2 ** Certification of Bunge Limited's Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act
(101) Interactive Data Files (submitted electronically herewith)
101 SCH * XBRL Taxonomy Extension Schema Document
101 CAL * XBRL Taxonomy Extension Calculation Linkbase Document
101 LAB * XBRL Taxonomy Extension Labels Linkbase Document
101 PRE * XBRL Taxonomy Extension Presentation Linkbase Document
101 DEF * XBRL Taxonomy Extension Definition Linkbase Document
101 INS
104
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its
XBRL tags are embedded within the Inline XBRL document.
Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101)
Subsidiary Issuers of Guaranteed Securities
*
**
+
++
Filed herewith.
Furnished herewith.
Denotes a management contract or compensatory plan or arrangement.
Portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission as part of
an application for confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
+++ Certain information contained in this exhibit, marked by [***], has been omitted because it (i) is not material and (ii) is
the type of information that the registrant treats as private or confidential.
62
2021 Bunge Annual Report
BUNGE LIMITED
Schedule II—Valuation and Qualifying Accounts
(US$ in millions)
Balance at
beginning of
period
Charged to
costs and
expenses
Charged to
other
accounts(b)
Deductions
from reserves
Balance at
end of period
185
70
37
766
172
66
78
404
144
45
58
316
38
7
52
66
115
14
13
49
35
6
4
95
(2)
(3)
—
(49) (c)
(8)
(11)
(28)
(400)
(16)
(15)
(17)
(22)
(5)
(3)
(3)
(49)
(127) (c)
(20)
(16)
(115)
(42) (c)
(9)
(15)
(65)
$
$
$
$
$
$
$
$
$
$
$
$
172
66
78
404
144
45
58
316
132
39
44
297
Description
FOR THE YEAR ENDED
DECEMBER 31, 2019
Allowances for doubtful
accounts(a)
Allowances for secured
advances to suppliers
Allowances for recoverable
taxes
Income tax valuation
allowances
FOR THE YEAR ENDED
DECEMBER 31, 2020
Allowances for doubtful
accounts(a)
Allowances for secured
advances to suppliers
Allowances for recoverable
taxes
Income tax valuation
allowances
FOR THE YEAR ENDED
DECEMBER 31, 2021
Allowances for doubtful
accounts(a)
Allowances for secured
advances to suppliers
Allowances for recoverable
taxes
Income tax valuation
allowances
$
$
$
$
$
$
$
$
$
$
$
$
(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.
E-1
2021 Bunge Annual Report
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
Consolidated Statements of Income for the Years Ended December 31, 2021, 2020 and 2019
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2021, 2020 and 2019
Consolidated Balance Sheets at December 31, 2021 and 2020
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020 and 2019
Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests for the Years Ended
December 31, 2021, 2020 and 2019
Notes to the Consolidated Financial Statements
Page
F-2
F-4
F-5
F-6
F-7
F-8
F-11
F-1
2021 Bunge Annual Report
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Bunge Limited
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Bunge Limited and subsidiaries (the "Company") as of
December 31, 2021 and 2020, and the related consolidated statements of income (loss), comprehensive income (loss), changes
in equity and redeemable noncontrolling interests, and cash flows, for each of the three years in the period ended December 31,
2021, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of
December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended
December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on the criteria
established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company's internal
control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and
are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also
included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements
that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures
that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and
we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Readily Marketable Inventories and Physically Settled Forward Purchase and Sale Contracts - Refer to Notes 1 and 15 to
the financial statements
Critical Audit Matter Description
The Company records agricultural commodity inventories, referred to as readily marketable inventories "RMI", and
physically settled forward purchase and sale contracts at fair value with changes in fair value recorded in earnings as a
component of cost of goods sold. The Company values RMI and physically settled forward purchase and sale contracts
primarily using Level 1 inputs, such as public exchange quotes of commodity futures, broker or dealer quotations. A portion of
the value, however, is derived using significant unobservable inputs referred to as Level 3 inputs, such as management
estimates regarding costs of transportation and other location-related adjustments, that involve significant judgment by
management.
F-2
2021 Bunge Annual Report
Auditing the significant unobservable inputs used by management to estimate the fair value of RMI and physically settled
forward purchase and sale contracts involved judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related the significant unobservable inputs used by management to estimate the fair value of RMI and
physically settled forward purchase and sale contracts included the following, among others:
• 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 effectiveness of internal 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 selections 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.
/s/ Deloitte & Touche LLP
St. Louis, Missouri
February 24, 2022
We have served as the Company's auditor since 2002.
F-3
2021 Bunge Annual Report
PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BUNGE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(U.S. dollars in millions, except per share data)
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Interest income
Interest expense
Foreign exchange (losses) gains — net
Other income — net
Income (loss) from affiliates
Goodwill impairment
Income (loss) from continuing operations before income tax
Income tax expense
Net income (loss)
Net (income) loss attributable to noncontrolling interests and redeemable
noncontrolling interests
Net income (loss) attributable to Bunge
Convertible preference share dividends and other obligations
Adjustment of redeemable noncontrolling interest
Net income (loss) available to Bunge common shareholders
Earnings (loss) per common share—basic
Net income (loss) attributable to Bunge common shareholders
Earnings (loss) per common share—diluted
Net income (loss) attributable to Bunge common shareholders
Year Ended December 31,
2021
2020
2019
$
59,152 $
41,404 $
41,140
(55,789)
3,363
(38,619)
2,785
(40,598)
542
(1,234)
(1,358)
(1,351)
48
(243)
(38)
509
160
—
2,565
(398)
2,167
(89)
2,078
(34)
—
2,044 $
22
(265)
150
126
(47)
—
1,413
(248)
1,165
(20)
1,145
(34)
10
1,121 $
31
(339)
(117)
97
40
(108)
(1,205)
(86)
(1,291)
11
(1,280)
(34)
(8)
(1,322)
14.50 $
7.97 $
(9.34)
13.64 $
7.71 $
(9.34)
$
$
$
The accompanying notes are an integral part of these consolidated financial statements.
F-4
BUNGE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(U.S. dollars in millions)
2021 Bunge Annual Report
Net income (loss)
Other comprehensive income (loss):
Foreign exchange translation adjustment (1)
Unrealized (losses) gains on designated hedges, net of tax (expense) benefit
of $(2), $4, and $(2)
Reclassification of realized net (gains) losses to net income, net of tax
(benefit) expense of $(1), $(6), and $(2)
Pension adjustment, net of tax (expense) benefit of $(17), $(2), and $2
Total other comprehensive (loss) income
Total comprehensive income
Year Ended December 31,
2021
2020
2019
$
2,167 $
1,165 $
(1,291)
(268)
(543)
1,359
(36)
(45)
(4)
57
(251)
1,916
1
(19)
(24)
14
3
(571)
1,317
594
(71)
523 $
26
25
51
Less: comprehensive (income) loss attributable to noncontrolling interests
and redeemable noncontrolling interests
Total comprehensive income attributable to Bunge
(63)
1,853 $
$
(1) The year ended December 31, 2019 included the release of cumulative translation adjustments upon the disposition of
certain of the Company's foreign subsidiaries and equity-method investments of $1,493 million, which was recorded in
Cost of goods sold, in the consolidated statements of income. There was no such release for the years ended December 31,
2021 and 2020.
The accompanying notes are an integral part of these consolidated financial statements.
F-5
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in millions, except share data)
ASSETS
Current assets:
Cash and cash equivalents
Trade accounts receivable (less allowances of $85 and $93) (Note 4)
Inventories (Note 5)
Assets held for sale (Note 2)
Other current assets (Note 6)
Total current assets
Property, plant and equipment, net (Note 7)
Operating lease assets (Note 27)
Goodwill (Note 8)
Other intangible assets, net (Note 9)
Investments in affiliates (Note 11)
Deferred income taxes (Note 14)
Other non-current assets (Note 12)
Total assets
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt (Note 17)
Current portion of long-term debt (Note 18)
Trade accounts payable (includes $568 and $294 carried at fair value)
Current operating lease obligations (Note 27)
Liabilities held for sale (Note 2)
Other current liabilities (Note 13)
Total current liabilities
Long-term debt (Note 18)
Deferred income taxes (Note 14)
Non-current operating lease obligations (Note 27)
Other non-current liabilities (Note 22)
Redeemable noncontrolling interests (Note 23)
Equity (Note 24):
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding:
2021 and 2020—6,899,683 shares (liquidation preference $100 per share)
Common shares, par value $.01; authorized—400,000,000 shares; issued and outstanding:
2021—141,057,414 shares, 2020—139,790,238 shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss (Note 24)
Treasury shares, at cost; 2021—16,726,697 and 2020—15,428,313 shares
Total Bunge shareholders' equity
Noncontrolling interests
Total equity
Total liabilities and equity
December 31,
2021
December 31,
2020
$
$
$
$
902 $
2,112
8,431
264
4,751
16,460
3,499
912
484
431
764
550
719
23,819 $
673 $
504
4,250
350
122
3,425
9,324
4,787
338
506
658
381
352
1,717
7,172
672
6,268
16,181
3,775
868
586
529
631
339
746
23,655
2,828
8
2,636
235
438
4,840
10,985
4,452
360
581
657
415
690
690
1
5,590
8,979
(6,471)
(1,120)
7,669
156
7,825
23,819 $
1
5,408
7,236
(6,246)
(1,020)
6,069
136
6,205
23,655
The accompanying notes are an integral part of these consolidated financial statements.
F-6
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in millions)
Year Ended December 31,
2020
2019
2021
$
2,167 $
1,165 $
(1,291)
OPERATING ACTIVITIES
Net income (loss)
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Impairment charges
Foreign exchange loss (gain) on net debt
Bad debt expense
Depreciation, depletion and amortization
Share-based compensation expense
Deferred income tax (benefit) expense
Gain on sale of investments and property, plant and equipment
Other, net
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Trade accounts receivable
Inventories, including net unrealized mark-to-market gains
Secured advances to suppliers
Trade accounts payable
Advances on sales
Net unrealized loss (gain) on derivative contracts
Margin deposits
Recoverable and income taxes, net
Accrued liabilities
Marketable securities
Beneficial interest in securitized trade receivables
Other, net
Cash used for operating activities
INVESTING ACTIVITIES
Payments made for capital expenditures
Proceeds from investments
Payments for investments
Settlement of net investment hedges
Proceeds from interest in securitized trade receivables
Payments for beneficial interest in securitized trade receivables
Proceeds from divestiture of businesses and disposal of property, plant and equipment
Payments for investments in affiliates
Proceeds from sale of investments in affiliates
Other, net
Cash provided by investing activities
FINANCING ACTIVITIES
Proceeds from short-term debt
Repayments of short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from the exercise of options for common shares
Repurchases of common shares
Dividends paid to preference shareholders
Dividends paid to common shareholders
Dividends paid to noncontrolling interests
Acquisition of noncontrolling interest
Other, net
Cash (used for) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents, and restricted cash
Net increase (decrease) in cash and cash equivalents, and restricted cash
Cash and cash equivalents, and restricted cash - beginning of period
Cash and cash equivalents, and restricted cash - end of period
$
226
78
5
424
61
(272)
(417)
(159)
(530)
(1,301)
(48)
1,594
32
394
252
247
39
(82)
(5,376)
(228)
(2,894)
(399)
171
(308)
(34)
5,234
(177)
647
(46)
11
14
5,113
10
(206)
70
435
71
71
(110)
55
(255)
(2,298)
(162)
97
(11)
(127)
(502)
51
58
46
(2,015)
21
(3,536)
(365)
305
(337)
65
1,943
—
194
(14)
—
22
1,813
29,600
(31,694)
1,001
(4)
116
(100)
(34)
(289)
(76)
(147)
(5)
(1,632)
(63)
524
381
905 $
33,776
(31,861)
2,401
(2,114)
9
(100)
(34)
(282)
(22)
—
(10)
1,763
19
59
322
381 $
1,825
139
9
548
39
(24)
(38)
(12)
(257)
504
(100)
(498)
15
(258)
63
109
43
(226)
(1,289)
(109)
(808)
(524)
449
(393)
(56)
1,312
—
729
(39)
19
6
1,503
46,613
(46,597)
5,244
(5,698)
17
—
(34)
(283)
(23)
—
(10)
(771)
5
(71)
393
322
The accompanying notes are an integral part of these consolidated financial statements.
F-7
2021 Bunge Annual Report
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS
BUNGE LIMITED AND SUBSIDIARIES
(U.S. dollars in millions, except share data)
Convertible
Preference Shares
Common Shares
Redeemable
Non-
Controlling
Interests
Shares
Amount
Shares
Amount
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury
Shares
Non-
Controlling
Interests
Total
Equity
Balance, January 1, 2021
$
Net income
Other comprehensive loss
Redemption value adjustment
Dividends on common shares,
$2.08 per share
Dividends on preference shares,
$4.875 per share
Dividends to noncontrolling
interests on subsidiary common
stock
Capital return to noncontrolling
interest
Acquisition of noncontrolling
interest
Disposition of noncontrolling
interest in a subsidiary
Share-based compensation
expense
Repurchase of common shares
Issuance of common shares,
including stock dividends
Balance, December 31, 2021
$
415
61
(26)
1
—
—
(71)
—
—
1
—
—
—
381
6,899,683
$
690
139,790,238
$
1
$
5,408
$
7,236
$
(6,246) $
(1,020) $
136
$
6,205
—
—
—
—
—
—
—
—
—
—
—
—
6,899,683
$
—
—
—
—
—
—
—
—
—
—
—
—
690
—
—
—
—
—
—
—
—
—
—
(1,298,384)
2,565,560
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(1)
—
—
—
—
—
—
61
122
2,078
—
—
(294)
(34)
—
—
(3)
—
—
—
(4)
—
(225)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(100)
—
28
—
—
—
—
(5)
(3)
—
—
—
—
—
141,057,414
$
1
$
5,590
$
8,979
$
(6,471) $
(1,120) $
156
$
2,106
(225)
(1)
(294)
(34)
(5)
(3)
(3)
—
61
(100)
118
7,825
F-8
2021 Bunge Annual Report
Convertible
Preference Shares
Common Shares
Redeemable
Non-
Controlling
Interests
Shares
Amount
Shares
Amount
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Shares
Non-
Controlling
Interests
Balance, January 1, 2020
$
Net income (loss)
Other comprehensive income
(loss)
Redemption value adjustment
Acquisition of noncontrolling
interest
Dividends on common shares,
$2.00 per share
Dividends on preference shares,
$4.875 per share
Dividends to noncontrolling
interests on subsidiary common
stock
Share-based compensation
expense
Repurchase of common shares
Issuance of common shares,
including stock dividends
397
(3)
42
(10)
—
—
—
(11)
—
—
—
6,899,683
$
—
—
—
—
—
—
—
—
—
—
690
—
—
—
—
—
—
—
—
—
—
141,813,142
$
1
$
5,329
$
6,437
$
(5,624) $
(920) $
117
$
—
—
—
—
—
—
—
—
(2,546,000)
523,096
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
71
—
8
1,145
—
10
(38)
(282)
(34)
—
—
—
(2)
—
(622)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(100)
—
24
9
—
(4)
—
—
(10)
—
—
—
Total
Equity
6,030
1,169
(613)
10
(42)
(282)
(34)
(10)
71
(100)
6
Balance, December 31, 2020
$
415
6,899,683
$
690
139,790,238
$
1
$
5,408
$
7,236
$
(6,246) $
(1,020) $
136
$
6,205
F-9
2021 Bunge Annual Report
Convertible
Preference Shares
Common Shares
Redeemable
Non-
Controlling
Interests
Shares
Amount
Shares
Amount
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Shares
Non-
Controlling
Interests
Total
Equity
Balance, January 1, 2019
$
Net (loss) income
Other comprehensive income
(loss)
Redemption value adjustment
Acquisition of noncontrolling
interest
Dividends on common shares, $
$2.00 per share
Dividends on preference shares,
$4.875 per share
Dividends to noncontrolling
interests on subsidiary common
stock
Noncontrolling decrease from
redemption
Contribution from
noncontrolling interest
Share-based compensation
expense
Impact of adoption of new
accounting standards (1)
Issuance of (conversion to)
common shares
Balance, December 31, 2019
$
424
(15)
(12)
8
—
—
—
(8)
—
—
—
—
—
397
6,899,683
$
—
—
—
—
—
—
—
—
—
—
—
—
6,899,683
$
690
—
—
—
—
—
—
—
—
—
—
—
—
690
141,111,081
$
1
$
5,278
$
8,059
$
(6,935) $
(920) $
205
$
—
—
—
—
—
—
—
—
—
—
—
702,061
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
39
—
12
(1,280)
—
(8)
(36)
(283)
(34)
—
—
—
—
21
(2)
—
1,332
—
—
—
—
—
—
—
—
(21)
—
—
—
—
—
—
—
—
—
—
—
—
—
4
(2)
—
(71)
—
—
(16)
(4)
1
—
—
—
6,378
(1,276)
1,330
(8)
(107)
(283)
(34)
(16)
(4)
1
39
—
10
141,813,142
$
1
$
5,329
$
6,437
$
(5,624) $
(920) $
117
$
6,030
The accompanying notes are an integral part of these consolidated financial statements.
F-10
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2021 Bunge Annual Report
1. NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES
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 four reportable segments: Agribusiness,
Refined and Specialty Oils, Milling, and Sugar and Bioenergy.
Corporate and Other includes salaries and overhead for corporate functions that are not allocated to the Company’s
individual reporting segments because the operating performance of such reporting segments is evaluated by the Company's
chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the
Company's captive insurance program, accounts receivable securitization activities, and certain income tax assets and liabilities.
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, foreign exchange and other financial instruments.
Refined and Specialty Oils —Bunge's Refined and Specialty Oils 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 refined and specialty oils
operations are located in North America, South America, Europe, Asia-Pacific, and Africa.
Milling —Bunge's Milling segment primarily comprises wheat and corn milling businesses that purchase wheat and corn
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 located in Mexico and Brazil. Corn milling
activities are primarily located in the United States and Mexico. See Note 2- Acquisitions and Dispositions for additional
information on Bunge's Mexican wheat milling activities.
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. Following the formation of the
joint venture 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.
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.
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 have a controlling financial interest 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 readily
determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary
if it has a controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact
the economics of the VIE 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. For VIEs in which Bunge is
F-11
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
considered the primary beneficiary, the entities meet the definition of a business and the entities' assets can be used other than
for the settlement of the VIE's obligations.
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—Effective July 1, 2021, the Company changed its reporting of certain income tax assets and liabilities
to report such assets and liabilities within Corporate and Other rather than within its reportable segments, as further described in
Note 28- Segment Information. Corresponding prior period amounts have been reclassified to conform to current period
presentation.
Effective January 1, 2021, the Company changed its segment reporting to align with its new value chain operational
structure, as further described in Note 28- Segment Information. Corresponding prior period amounts have been reclassified to
conform to current period presentation.
Effective July 1, 2020, the Company changed its reporting of cash proceeds from and repayments of short-term debt
with maturities of 90 days or less to separately present such cash proceeds and repayments in its consolidated statement of cash
flows. Prior to July 1, 2020, the Company presented cash proceeds from and repayments of short-term debt with maturities of
90 days or less on a net basis. Prior period amounts have been reclassified to conform to current period 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 consolidated financial statements and notes. Actual
results could differ from those estimates.
Offsetting—In the normal course of its operations the Company routinely enters into transactions resulting in the
recognition of assets and liabilities stemming from unconditional obligations, for example trade receivables and trade payables,
or conditional obligations, for example unrealized gains and losses on derivative contracts at fair value, with the same
counterparty. The Company generally records all such assets and liabilities on a gross basis, even when they are subject to
master netting agreements.
However, the Company also engages in various trade structured finance activities to leverage the value of its global trade
flows. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit ("LCs")
from financial institutions, each based on an underlying commodity trade flow, 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, when all related assets and liabilities are subject
to legally enforceable set-off agreements and the criteria of ASC 210-20, Offsetting, has been met. 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.
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. As such, amounts included in the consolidated
statements of income (loss), 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 loss. However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly
inflationary, then the foreign entity's financial statements are remeasured as if the functional currency were the reporting
currency.
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 gains (losses) -
net unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for
which settlement is neither planned nor anticipated in the foreseeable future, in which case the remeasurement gain or loss is
reported as a component of Accumulated other comprehensive 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
F-12
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated
statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported
within the consolidated balance sheets that sums to the total of the same such amounts shown in the consolidated statements of
cash flows.
(US$ in millions)
Cash and cash equivalents
Restricted cash included in other current assets
Total
December 31,
2021
2020
2019
$
$
902 $
3
905 $
352 $
29
381 $
320
2
322
Trade Accounts Receivable—Trade accounts receivable is stated at historical carrying amounts net of write-offs and
allowances for uncollectible accounts. Bunge establishes allowances for uncollectible trade accounts receivable based on
lifetime expected credit losses using an aging schedule for each pool of trade accounts receivable. Pools are determined based
on risk characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data
based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for
expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted
if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level,
systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Uncollectible accounts are
written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company
has determined that collection of the balance is unlikely.
Specifically, in establishing appropriate default rates as of December 31, 2021 and 2020, the Company took into
consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors,
which did not result in a material impact on the financial statements.
Bunge records and reports accrued interest receivable within the same line item as the related trade accounts receivable.
The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including
accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest
receivable.
Secured Advances to Suppliers—Secured advances to suppliers are stated at historical carrying amounts net of write-offs
and allowances for uncollectible accounts. Secured advances to suppliers are expected to be settled through delivery of non-
cash assets and as such, allowances are established when collection is not probable. Bunge establishes an allowance for secured
advances to suppliers, generally farmers and resellers of grain, based on historical experience, farming economics and other
market conditions, as well as specific customer collection issues. Uncollectible 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 that 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, including 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 prices in active markets, may be sold without significant further processing,
F-13
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 net realizable value by inventory product class. Cost is
determined primarily using 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 RMI, 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:
Level
Level 1
Level 2
Description
Quoted prices (unadjusted) in active
markets for identical assets or
liabilities.
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.
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.
Financial Instrument (Assets / Liabilities)
Exchange traded derivative contracts.
Marketable securities in active markets.
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.
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 exposure to market variables (see Note 16-
Derivative Instruments and Hedging Activities). Additionally, commodity contracts relating to forward sales of commodities in
F-14
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
the Company’s Agribusiness segment, including 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. For derivatives designated as hedges, Bunge assesses at the inception of the hedge whether any
such derivatives 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 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 loss in the
consolidated balance sheets.
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 held-for-trading. Available-for-sale debt securities are reported at
fair value with unrealized gains (losses) included in Accumulated other comprehensive loss. Held-to-maturity debt investments
represent financial assets in which Bunge has the intent and ability to hold to maturity and are reported at amortized cost. 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:
Buildings
Machinery and equipment
Furniture, fixtures and other
Years
10 - 50
7 - 25
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).
F-15
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, minus impairment. Bunge reviews its investments annually or when an event or circumstances indicate that a
potential 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 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 such as soybeans, soybean meal and oil, corn, and wheat accounted for as derivatives at fair value under
ASC 815, primarily in the Company’s Agribusiness segment. 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 generally 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 Refined and
Specialty Oils and Milling segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola
oil.
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
sheets 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 Refined and Specialty Oils and Milling 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, and corn-based products; and fertilizer products. These sales are accounted for under ASC 606
as these sales arrangements do not meet the 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.
F-16
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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.
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 $33 million, $24 million and $15 million for the years ended December 31, 2021, 2020 and 2019, respectively.
New Accounting Pronouncements
In November 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-10, Government
Assistance (Topic 832) - Disclosures by Business Entities About Government Assistance, which requires annual disclosures for
transactions with a government authority that are accounted for by applying a grant or contribution accounting model by
analogy. The guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The
guidance may be applied either prospectively or retrospectively to all transactions within the scope of the amendments that are
reflected in financial statements at the date of initial application and new transactions that are entered into after the date of
initial application. The Company is currently evaluating the impact of this standard on its consolidated financial statements.
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20)
and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for
convertible instruments and contracts in an entity’s own equity. The guidance also addresses how convertible instruments are
accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible
instruments and contracts in an entity’s own equity. Either a modified retrospective method of transition or a fully retrospective
method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after
December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal
year beginning after December 15, 2020. The Company continues to evaluate, but does not expect this standard to have an
impact on its consolidated financial statements.
F-17
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of
Reference Rate Reform on Financial Reporting, with subsequent updates through ASU 2021-01, which collectively provide
temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting, to
ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate
("LIBOR") and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and is to be
applied prospectively from any date beginning March 12, 2020 through December 31, 2022. In March 2021, the Financial
Conduct Authority ("FCA") announced that most LIBOR settings will be discontinued after December 31, 2021, except for
certain USD LIBOR settings which will continue through to June 30, 2023. In September 2021, the FCA further announced that
it will require the LIBOR benchmark administrator to publish sterling and Japanese yen LIBOR settings under a synthetic
methodology based on term risk-free rates for the duration of 2022. These synthetic LIBOR settings will be available only for
use in legacy contracts and are not for use in new business.
Bunge has utilized the relief provided by Topic 848 to ensure financial reporting results reflect the intended
continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates.
The expedients allow an eligible modified contract to be accounted for and presented as a continuation of the existing contract.
The Company has identified its LIBOR-based contracts that will be impacted by the cessation of LIBOR. To prepare
for this change, the Company is actively working with counterparties to incorporate fallback language in negotiated contracts,
in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new contracts. The evaluation
and modification of contracts is ongoing. As such, the Company continues to evaluate the impacts of this standard on its
consolidated financial statements.
Recently Adopted Accounting Pronouncements
On January 1, 2021, the Company adopted 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 740. 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 adoption of this guidance did not have a material impact on
Bunge's consolidated financial statements.
On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which
introduced a new accounting model, referred to as the current expected credit losses ("CECL") model, for estimating credit
losses on certain financial instruments and which 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. The Company
adopted the guidance under a modified-retrospective approach with a cumulative effect adjustment to opening retained
earnings. The adoption of this standard did not have a material impact on Bunge's consolidated financial statements.
2. ACQUISITIONS AND DISPOSITIONS
Assets held for sale
Mexico Wheat Milling Disposition
On October 12, 2021, Bunge entered into an agreement to sell substantially all of its wheat milling business in Mexico
in exchange for cash proceeds approximately equal to the book value of Property, plant and equipment, net, plus an additional
sum in consideration for the value of net working capital to be transferred upon closing. Additionally, cumulative translation
adjustments, among other items related to the disposal group, resulted in a corresponding impairment loss on sale of
$170 million, recognized in Cost of goods sold for the year ended December 31, 2021. The agreement is expected to close in
the second quarter of 2022 and is subject to regulatory approval and customary closing conditions.
F-18
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale
and Liabilities held for sale, respectively, on the consolidated balance sheet at December 31, 2021, reported under the Milling
segment:
(US$ in millions)
Trade accounts receivable
Inventories
Other current assets
Property, plant and equipment, net
Operating lease assets
Goodwill & Other intangible assets, net
Impairment reserve
Assets held for sale (1)
Trade accounts payable
Current operating lease obligations
Other current liabilities
Liabilities held for sale
December 31,
2021
$
$
$
$
67
106
15
157
3
86
(170)
264
109
3
10
122
(1) Assets held for sale excludes approximately $155 million of cumulative translation adjustments on non-current assets
included in the Mexico wheat milling disposal group.
Dispositions
US Grain Disposition
On April 21, 2020, Bunge announced that it had entered into an agreement to sell a portfolio of interior grain elevators
located in the United States. On July 9, 2021, the transaction closed in accordance with the terms of the agreement. Upon
closing, Bunge received cash proceeds of $298 million in consideration for the book value of property, plant and equipment,
net, plus an additional sum in consideration for the value of net working capital transferred on the date of closing, resulting in a
gain on sale of $158 million recognized in Other income—net, for the year ended December 31, 2021.
The following table presents the book values of the major classes of assets and liabilities that were included in the
disposal group, reported under the Agribusiness segment:
(US$ in millions)
Inventories
Other current assets
Property, plant and equipment, net
Operating lease assets
Goodwill
Assets
Trade accounts payable
Current operating lease obligations
Other current liabilities
Non-current lease obligations
Liabilities
F-19
$
$
$
$
111
155
128
6
6
406
43
1
6
5
55
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Rotterdam Oils Refinery Disposition
On November 4, 2020, Bunge announced that its Bunge Loders Croklaan joint venture had entered into an agreement
to sell its oil refinery located in Rotterdam, Netherlands. Bunge is leasing back the facility from the buyer in a phased transition
through 2024 so that it can continue to supply its customers with its products. The transaction, accounted for as an asset sale,
closed during the first quarter of 2021. The Company recorded a gain of $219 million on the sale, including the noncontrolling
interest portion, which was recorded within Other income—net, in the consolidated statement of income for the year ended
December 31, 2021.
The following table presents the book values of the major classes of assets and liabilities that were included in the
disposal group, reported under the Refined and Specialty Oils segment:
(US$ in millions)
Other current assets
Property, plant and equipment, net
Operating lease assets
Assets
Current operating lease obligations
Other current liabilities
Deferred income taxes
Non-current lease obligations
Liabilities
Mexico Oils Facility Disposition
$
$
$
$
3
94
6
103
1
5
7
5
18
During 2021, Bunge completed the sale of its oils packaging facility in Queretaro, Mexico. The transaction primarily
includes the location's property, plant and equipment and related processes. The Company recorded a gain of $19 million on the
sale, which was recorded within Other income—net in the consolidated statement of income.
The following table presents the book values of the major classes of assets included in the disposal group, reported
under the Refined and Specialty Oils reportable segment:
(US$ in millions)
Property, plant and equipment, net
Goodwill
Assets
$
$
7
1
8
Brazilian Margarine and Mayonnaise
On December 20, 2019, Bunge announced that it had entered into an agreement to sell its margarine and mayonnaise
assets in Brazil to a third party. The transaction included three production plants and certain related brands. The sale was
completed during the fourth quarter of 2020. The Company recorded $98 million gain on the sale within Other income—net in
the consolidated statement of income.
F-20
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents the book values of the major classes of assets and liabilities that were included in the
disposal group, reported under the Refined and Specialty Oils segment:
(US$ in millions)
Inventories
Property, plant and equipment, net
Other intangible assets, net
Assets
Other current liabilities
Liabilities
Woodland, California Rice Mill
$
$
$
$
24
33
3
60
5
5
On November 10, 2020, Bunge announced that it had agreed to sell its rice mill in Woodland, California, together with
related working capital, for $25 million. The sale was finalized during the fourth quarter of 2020, and as the sale price, net of
applicable transaction costs, substantially equaled net book value, no material gain or loss was recorded on the sale.
The following table presents the book values of the major classes of assets and liabilities that were included in the
disposal group, which were reported under the Milling segment:
(US$ in millions)
Accounts receivable
Inventories
Other current assets
Property, plant and equipment, net
Assets
Trade accounts payable
Liabilities
$
$
$
$
1
10
11
16
38
14
14
BP Bunge Bioenergia Formation
On December 2, 2019, Bunge and BP completed the formation of BP Bunge Bioenergia, the Brazilian bioenergy
joint venture that combined 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.
The Company recognized an impairment charge and loss on sale in its Sugar and Bioenergy segment, principally
related to the recognition of cumulative currency translation effects, of $1,524 million, recorded in Cost of goods sold,
$49 million recorder in Other income - net, and $2 million recorded in Selling, general and administrative expenses, for the year
ended December 31, 2019. As a result of this transaction, commencing December 2, 2019, Bunge ceased to consolidate its
Brazilian sugar and bioenergy operations in its consolidated financial statements, instead accounting for its interest in the joint
venture under the equity method of accounting.
F-21
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. TRADE STRUCTURED FINANCE PROGRAM
The Company engages in various trade structured finance activities to leverage the value of its global trade flows. For the
years ended December 31, 2021, 2020 and 2019, net returns from these activities were $31 million, $25 million and $27
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") from financial institutions, each based on an underlying commodity trade flow, 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, 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, 2021 and 2020, time deposits and LCs of $6,543 million and $4,715 million, respectively, were
presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting, had been met. At December 31, 2021
and 2020, time deposits, including those presented on a net basis, carried weighted-average interest rates of 1.08% and 1.87%,
respectively. During the years ended December 31, 2021, 2020 and 2019, total net proceeds from issuances of LCs were $6,522
million, $4,654 million and $3,318 million, respectively. These cash inflows are offset by the related cash outflows resulting
from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating
activities in the consolidated statements of cash flows.
As part of the trade structured finance activities, LCs may be sold to financial institutions on a discounted basis. Bunge
does not service derecognized LCs. The terms of the sale may require the Company to continue to make periodic interest
payments to financial institutions based on changes in interest rates for a period of up to 365 days. Bunge’s payment obligation
to financial institutions as part of the trade structured finance activities, including any unrealized gain or loss on changes in
interest rates, is included in Other current liabilities and is not significant as of December 31, 2021 and 2020. The notional
amounts of LCs subject to continuing variable interest payments that have been derecognized from the Company's consolidated
balance sheets as of December 31, 2021 and 2020 are included in Note 16- Derivative Instruments and Hedging Activities. The
net gain or loss included in Cost of goods sold resulting from the fair valuation of such variable interest rate obligations is not
significant for the years ended December 31, 2021, 2020 and 2019.
4. TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
Trade Accounts Receivable
Changes to the allowance for expected credit losses related to Trade accounts receivable are as follows:
Twelve Months Ended December 31, 2021
Rollforward of the Allowance for Credit Losses (US$ in millions)
Allowance as of January 1, 2021
Current period provisions
Recoveries
Write-offs charged against the allowance
Foreign exchange translation differences
Allowance as of December 31, 2021
Short-term Long-term (1)
93 $
35
(31)
(9)
(3)
85 $
51 $
—
(2)
—
(2)
47 $
$
$
Total
144
35
(33)
(9)
(5)
132
(1) Long-term portion of the allowance for credit losses is included in Other non-current assets.
22
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Rollforward of the Allowance for Credit Losses (US$ in millions)
Allowance as of January 1, 2020
Current period provisions (2)
Recoveries
Write-offs charged against the allowance
Foreign exchange translation differences
Allowance as of December 31, 2020 (2)
Twelve Months Ended December 31, 2020
Short-term Long-term (1)
Total
$
$
108 $
64
(46)
(27)
(6)
93 $
65 $
—
(3)
—
(11)
51 $
173
64
(49)
(27)
(17)
144
(1) Long-term portion of the allowance for credit losses is included in Other non-current assets.
(2) In addition to the above mentioned current period provisions associated with expected credit losses, during the first
half of the year ended December 31, 2020 the Company settled ongoing litigation with a customer in relation to an
historic outstanding account receivable, resulting in the Company recording a $51 million bad debt expense, within
Selling, general and administrative expenses, as well as a $15 million legal provision, within Other income – net, in its
consolidated statement of income.
Trade Receivables Securitization Program
Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the "Program") with a
financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers
(collectively, the "Purchasers") that provides for funding of up to $925 million against receivables sold into the Program. Bunge
may from time to time, with the consent of the administrative agent, request one or more of the committed purchasers to
increase the total commitments by an amount not to exceed $75 million, pursuant to a $200 million accordion provision, of
which $125 million was exercised by the Company on October 6, 2021, thereby increasing the funding commitment from
$800 million to the current $925 million level.
The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its
operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables
may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity,
Bunge Securitization B.V. ("BSBV") formed under the laws of the Netherlands. BSBV in turn sells such purchased trade
receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In
connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount
upon the collection of the underlying receivables.
Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and
collecting the accounts receivable for the Program. On May 17, 2021, Bunge and certain of its subsidiaries renewed and
amended the Program. As a result, the Program terminates on May 17, 2031. However, each committed purchaser's
commitment to purchase trade receivables under the Program will terminate on May 17, 2024, unless extended for an additional
period in accordance with the terms of the receivables transfer agreement.
(US$ in millions)
Receivables sold which were derecognized from Bunge's balance sheet
Deferred purchase price included in Other current assets
December 31,
2021
2020
$
$
1,426 $
496 $
969
177
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- Other Current Assets). The DPP will be repaid
in cash as receivables are collected, generally within 30 days. Provisions for delinquencies and credit losses on trade receivables
sold under the Program as of December 31, 2021, 2020 and 2019 were $5 million, $5 million, and $5 million, respectively.
F-23
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The table below summarizes the cash flows and discounts of Bunge's trade receivables associated with the Program.
Servicing fees under the Program were not significant in any period.
(US$ in millions)
Gross receivables sold
Proceeds received in cash related to transfer of receivables
Cash collections from customers on receivables previously sold
Discounts related to gross receivables sold included in SG&A
Years Ended December 31,
2021
2020
2019
$
$
$
$
14,648 $
10,964 $
10,120
14,018 $
10,648 $
14,230 $
9,746 $
7 $
10 $
9,868
8,434
15
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.
5. INVENTORIES
Inventories by segment are presented below. 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.
(US$ in millions)
Agribusiness(1)
Refined and Specialty Oils(2)
Milling (3)
Corporate and Other
Total (4)
December 31,
2021
2020
$
6,800 $
6,019
1,310
319
2
885
268
—
$
8,431 $
7,172
(1) Includes RMI of $6,490 million and $5,735 million at December 31, 2021 and 2020, respectively. Assets held for sale
includes RMI of zero and $365 million at December 31, 2021 and 2020, respectively. Of the total RMI, $4,857 million
and $4,369 million can be attributable to merchandising activities at December 31, 2021 and 2020, respectively.
(2) Includes RMI of $257 million and $174 million at December 31, 2021 and 2020, respectively.
(3) Includes RMI of $122 million and $52 million at December 31, 2021 and 2020, respectively.
(4) Includes net unrealized mark-to-market gains of $427 million and $762 million at December 31, 2021 and 2020,
respectively. Cost of goods sold included net unrealized mark-to-market gains of $86 million, $582 million, and
$281 million for the years ended December 31, 2021, 2020 and 2019, respectively.
F-24
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. OTHER CURRENT ASSETS
Other current assets consist of the following:
(US$ in millions)
Unrealized gains on derivative contracts, at fair value
Prepaid commodity purchase contracts (1)
Secured advances to suppliers, net (2)
Recoverable taxes, net
Margin deposits
Marketable securities and other short-term investments (4)
Deferred purchase price receivable (3)
Income taxes receivable
Prepaid expenses
Restricted cash
Other
Total
December 31,
2021
2020
$
1,630 $
3,555
186
375
347
569
520
496
47
380
3
198
174
380
385
817
346
177
27
231
29
147
$
4,751 $
6,268
(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, primarily to secure the origination of soybeans for Bunge's soybean processing facilities in Brazil.
Bunge does not bear any of the costs or operational risks associated with growing the related crops. The ability of
Bunge's counterparties to repay these amounts is affected by agricultural economic conditions in the relevant
geography, which are, in turn, affected by commodity prices, currency exchange rates, crop input costs and crop
quality and yields. As a result, the advances are largely collateralized by future crops and physical assets of the
suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold.
The secured advances to farmers are reported net of allowances of $3 million and $2 million at December 31, 2021 and
December 31, 2020, respectively. Bunge periodically evaluates the collectability of Bunge’s farmer receivables and
records allowances if Bunge determines that collection is doubtful. Bunge bases the Company’s determination of the
allowance of analyses of the credit quality of individual accounts, also considering the economic and financial
condition of the farming industry and other market conditions, as well as the value of any collateral related to amounts
owed. Bunge continuously reviews defaulted farmer receivables for impairment on an individual account basis. Bunge
considers all accounts in legal collections processes to be defaulted and past due. For such accounts, Bunge determines
the allowance for uncollectible amounts based on the fair value of the associated collateral, net of estimated costs to
sell. For all renegotiated accounts (current and past due), Bunge considers changes in farm economic condition and
other market conditions, Bunge’s historical experience related to renegotiated accounts, and the fair value of collateral
in determining the allowance for doubtful accounts.
Interest earned on secured advances to suppliers of $26 million, $31 million, and $26 million, for the years ended
December 31, 2021, 2020 and 2019, respectively, is included in Net sales in the consolidated statements of income.
(3) Deferred purchase price receivable represents additional credit support for the Purchasers in Bunge's trade receivables
securitization program (see Note 4- Trade Accounts Receivable and Trade Receivable Securitization Program).
(4) Marketable securities and other short-term investments—Bunge invests in foreign government securities, corporate
debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the
consolidated balance sheets as marketable securities and other short-term investments.
25
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
Foreign government securities
Corporate debt securities
Equity securities
Other
December 31,
2021
2020
$
261 $
158
60
41
Total marketable securities and other short-term investments
$
520 $
207
136
—
3
346
As of December 31, 2021 and 2020, $479 million and $343 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 investments, their carrying values approximate fair values. For the years ended December 31, 2021,
2020 and 2019, unrealized gains of $47 million, $18 million, and $32 million, respectively, have been recorded and
recognized in Other income - net for investments held at December 31, 2021, 2020, and 2019.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
(US$ in millions)
Land
Buildings
Machinery and equipment
Furniture, fixtures and other
Construction in progress
Gross book value
Less: accumulated depreciation and depletion
Total property, plant and equipment, net
December 31,
2021
2020
$
342 $
1,738
4,508
601
330
7,519
(4,020)
$
3,499 $
359
1,894
4,586
594
249
7,682
(3,907)
3,775
Bunge's capital expenditures amounted to $437 million, $384 million, and $528 million during the years ended December
31, 2021, 2020 and 2019, respectively. Included in these capitalized expenditures was capitalized interest on construction in
progress of $2 million, $1 million, and $1 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Depreciation and depletion expense was $376 million, $384 million and $489 million for the years ended December 31, 2021,
2020 and 2019, respectively.
8. GOODWILL
Bunge generally performs its annual goodwill impairment analysis during the fourth quarter. If events or indicators of
impairment occur between annual impairment analyses, the Company performs an impairment analysis at that date. These
events or circumstances could include a significant change in the business climate, legal factors, operating performance
indicators, competition, or the sale or disposition of a significant asset. In testing for a potential impairment of goodwill, the
Company: (1) validates changes, if any, to its reporting units with goodwill balances; (2) allocates goodwill to its reporting
units to which acquired goodwill relates; (3) determines the carrying value, or book value, of its reporting units; (4) estimates
the fair value of each reporting unit using a discounted cash flow model and/or using market multiples; (5) compares the fair
value of each reporting unit to its carrying value; and (6) if the estimated fair value of a reporting unit is less than the carrying
value, the Company recognizes an impairment charge for such amount, not to exceed the total amount of goodwill allocated to
that reporting unit.
Critical estimates in the determination of fair value under the income approach include, but are not limited to,
assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability,
future capital expenditures, other expenses, and discount rates, all of which are subject to a high degree of judgment.
F-26
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Changes in the carrying value of goodwill by segment for the years ended December 31, 2021 and 2020 are as follows:
(US$ in millions)
Cost:
Balance at December 31, 2020
Reclassification to assets held for sale (1)
Disposals
Foreign currency translation
Balance at December 31, 2021
Accumulated impairment losses:
Balance at December 31, 2020
Impairment charge for the period
Disposals
Foreign currency translation
Balance at December 31, 2021
Agribusiness
Refined and
Specialty Oils
Milling
Sugar and
Bioenergy
Total
$
224 $
326 $
—
(1)
(13)
210
(2)
—
—
—
(2)
—
(1)
(12)
313
(115)
—
—
—
(115)
156 $
(69)
—
(6)
81
(3)
—
—
—
(3)
— $
—
—
—
—
—
—
—
—
—
706
(69)
(2)
(31)
604
(120)
—
—
—
(120)
Net carrying value at December 31, 2021
$
208 $
198 $
78 $
— $
484
(US$ in millions)
Cost:
Agribusiness
Refined and
Specialty Oils
Milling
Sugar and
Bioenergy
Total
Balance at December 31, 2019
$
231 $
327 $
179 $
— $
Additions
Disposals
Foreign currency translation
Balance at December 31, 2020
Accumulated impairment losses:
Balance at December 31, 2019
Impairment charge for the period
Disposals (3)
Foreign currency translation
Balance at December 31, 2020
—
(6)
(1)
224
(2)
—
—
—
(2)
—
(8)
7
326
(121)
—
8
(2)
(115)
—
(1)
(22)
156
(3)
—
—
—
(3)
—
—
—
—
—
—
—
—
—
737
—
(15)
(16)
706
(126)
—
8
(2)
(120)
Net carrying value at December 31, 2020
$
222 $
211 $
153 $
— $
586
(1) During the year ended December 31, 2021, the Company announced it had entered into an agreement to sell substantially
all of its wheat milling business in Mexico. Refer to Note 2- Acquisitions and Dispositions for details.
F-27
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. OTHER INTANGIBLE ASSETS
Other intangible assets are all finite-lived and consist of the following:
(US$ in millions)
Gross carrying amount:
Trademarks/brands
Licenses
Port rights
Customer relationships
Patents
Other
Accumulated amortization:
Trademarks/brands
Licenses
Port rights
Customer relationships
Patents
Other
Other intangible assets, net
December 31,
2021
2020
$
169 $
12
59
308
134
56
738
(90)
(11)
(14)
(94)
(65)
(33)
(307)
431 $
$
199
11
63
359
143
60
835
(101)
(10)
(12)
(96)
(57)
(30)
(306)
529
Amortization expense was $48 million, $49 million, and $55 million for the years ended December 31, 2021, 2020 and
2019, respectively. The estimated future amortization expense is as follows: $43 million for 2022; $43 million for 2023;
$42 million for 2024; $41 million for 2025; and $41 million for 2026. During 2019, Bunge recorded an impairment charge of
$11 million related to a customer relationship intangible asset in its Milling segment.
During the year ended December 31, 2021, the Company announced it had entered into an agreement to sell substantially
all of its wheat milling business in Mexico. As a result of this transaction, $17 million of Other intangible assets, net have been
transferred to Assets held for sale of December 31, 2021. Refer to Note 2- Acquisitions and Dispositions for details.
10. IMPAIRMENTS
For the year ended December 31, 2021, Bunge recorded a pre-tax impairment charge of $170 million, in Cost of goods
sold, related to the classification of our Mexican wheat milling business as held-for-sale (see Note 2- Acquisitions and
Dispositions). The charge was recorded in the Milling segment. Bunge also recorded pre-tax impairment charges of
$50 million, which includes $15 million attributable to noncontrolling interests, in Cost of goods sold, related to an oils facility
in China. The charge was recorded in the Refined and Specialty Oils 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 Selling, general and administrative expenses, Cost of goods sold, and
Other income—net, 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 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, $148 million
to Refined and Specialty Oils, $91 million to Agribusiness, $28 million to Milling, and $22 million to Corporate and Other.
F-28
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As a result of impairment, certain assets have been measured at fair value on a nonrecurring basis using significant
unobservable inputs (Level 3). 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.
11. INVESTMENTS IN AFFILIATES
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 Income (loss) from affiliates, 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, 2021 and 2020, the aggregate of all basis differences was
a credit of $169 million, including $144 million of amortizable basis difference, and $205 million, including $136 million of
amortizable basis difference, respectively, primarily associated with BP Bunge Bioenergia. Certain significant equity method
investments at December 31, 2021 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 that complements its
grain origination business.
Agrofel Grãos e Insumos. - Bunge has a 30% ownership interest in an agricultural inputs reseller in Brazil that
complements its soybean origination business.
Complejo Agroindustrial Angostura S.A. ("CAIASA") - Bunge has a 33% 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 ("SALIC") 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 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 50% ownership in VAH, with Wilmar International
Limited ("Wilmar") owning the remaining 50%. VAH owns 100% of the shares of an oilseed processing facility in Vietnam.
Sugar and Bioenergy
BP Bunge Bioenergia - Bunge has a 50% ownership interest in BP Bunge Bioenergia, a joint venture with BP plc. BP
Bunge Bioenergia is a leading company in the ethanol, biopower, and sugar market in Brazil.
ProMaiz - Bunge has a 50% ownership interest in a corn wet milling facility joint venture with AGD in Argentina for the
production of ethanol.
Corporate and Other
Australia Plant Proteins - Bunge has a 22% ownership interest in a plant-based protein ingredients company in Australia
that complements Bunge's existing businesses.
Merit Functional Foods Corp. - Bunge has a 29% ownership interest in a plant-based protein ingredients company in
Canada that complements Bunge's existing businesses.
F-29
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Summarized financial information, combined, for all of Bunge's equity method investees is as follows:
(US$ in millions)
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
(US$ in millions)
Net sales
Gross profit
Net income (loss)
Variable Interest Entities
December 31,
2021
2020
3,416 $
3,446
6,862 $
2,373 $
2,156
4,529 $
2,266
3,391
5,657
1,351
2,233
3,584
$
$
$
$
Years ended December 31,
2021
2020
2019
$
9,441 $
6,310 $
3,611
832
358
577
(28)
359
95
Bunge holds investment interests in various entities, as described above, that are included in Investments in affiliates and
Other non-current assets in the consolidated balance sheets. Certain of these investments, which are primarily reported in
Bunge's Agribusiness segment, have been determined to be variable interest entities for which Bunge has determined it is not
the primary beneficiary. Accordingly, these investments are not consolidated by Bunge. Bunge's exposure to loss related to
these unconsolidated investments is $487 million and $449 million, respectively, as of December 31, 2021 and 2020. Bunge's
exposure to loss primarily comprises Bunge's investments in affiliates balance, third party guarantees, and long term loans,
assuming full loss of the investment balance and full payment of the guarantees regardless of the probability of such losses
actually being incurred in accordance with US GAAP disclosure rules. See Note 21- Commitments and Contingencies.
On January 6, 2021, Bunge entered into a series of agreements to acquire a minority interest and certain intellectual
property, licensing, and distribution rights in Australian Plant Proteins, a variable interest entity, for $35 million. The
Company's exposure to loss related to this unconsolidated investment is primarily limited to the book value of the investment.
On January 18, 2022, Bunge purchased a 33% interest in Sinagro Produtos Agropecuários S.A. ("Sinagro"), a Brazilian
distributor of agricultural inputs and originator of grains, in exchange for BRL 251 million ($45 million). In addition, Bunge
has provided certain guarantees of SinAgro’s approximately BRL 800 million ($145 million) indebtedness in proportion to
Bunge’s 33% equity holding, representing a maximum guarantee of approximately $48 million. The Company's exposure to
loss related to this unconsolidated variable interest entity is limited to the book value of the investment and the guarantee, which
total $93 million. The transaction remains subject to regulatory approvals and is expected to close in the first half of 2022.
F-30
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. OTHER NON-CURRENT ASSETS
Other non-current assets consist of the following:
(US$ in millions)
Recoverable taxes, net (1)
Judicial deposits (1)
Other long-term receivables, net (3)
Income taxes receivable (1)
Long-term investments (2)
Affiliate loans receivable
Long-term receivables from farmers in Brazil, net (1)
Unrealized gains on derivative contracts, at fair value
Other
Total
December 31,
2021
2020
$
66 $
89
11
139
196
16
33
49
120
$
719 $
115
72
12
150
136
15
38
111
97
746
(1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several
years.
(2) As of December 31, 2021 and 2020, $12 million and $12 million, respectively, of long-term investments were
recorded at fair value.
(3) Net of allowances as described in Note 4- Trade Accounts Receivable and Trade Receivable Securitization Program.
Recoverable taxes, net—Recoverable taxes are reported net of allowances of $18 million and $17 million at December
31, 2021 and 2020, respectively.
Judicial deposits—Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These Brazilian
funds are held in judicial escrow related to certain legal proceedings pending resolution and bear interest at the Selic rate, which
is the benchmark rate of the Brazilian central bank.
Income taxes receivable—Income taxes receivable include overpayments of current income taxes plus accrued interest.
These income tax prepayments are expected to be used 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 remaining maturities 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- Other Current Assets) and reclassified to Other non-current assets when collection issues with farmers arise and amounts
become past due with resolution of matters 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, 2021
and 2020 was $92 million and $132 million, respectively. The table below summarizes Bunge's recorded investment in long-
term receivables from farmers in Brazil and the related allowance amounts.
F-31
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
For which an allowance has been provided:
Legal collection process (1)
Renegotiated amounts
For which no allowance has been provided:
Legal collection process (1)
Renegotiated amounts (2)
Other long-term receivables
Total
December 31, 2021
December 31, 2020
Recorded
Investment
Allowance
Recorded
Investment
Allowance
$
42 $
35 $
73 $
3
20
2
2
1
—
—
—
6
22
—
—
$
69 $
36 $
101 $
60
3
—
—
—
63
(1) All amounts in legal process are considered past due upon initiation of legal action.
(2) These 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.
(US$ in millions)
Beginning balance
Bad debt provisions
Recoveries
Write-offs
Foreign currency translation
Ending balance
13. OTHER CURRENT LIABILITIES
Other current liabilities consist of the following:
(US$ in millions)
Accrued liabilities
Unrealized losses on derivative contracts at fair value
Advances on sales (1)
Payables for purchase of shares (2)
Income tax payable
Other
Total
Year Ended December 31,
2021
2020
$
63 $
3
(23)
(4)
(3)
$
36 $
96
12
(16)
(7)
(22)
63
December 31,
2021
2020
$
689 $
1,713
437
—
168
418
652
3,226
406
149
57
350
$
3,425 $
4,840
(1) The Company records advances on sales when cash payments are received in advance of the Company's performance
and recognizes revenue once the related performance obligation is completed. Advances on sales are impacted by the
seasonality of our business, including the timing of harvests in the northern and southern hemispheres, and amounts at
each balance sheet date will generally be recognized in earnings within twelve months or less.
(2) On December 9, 2020, Bunge filed an unconditional tender offer to acquire the non-controlling interests in its Z.T.
Kruszwica S.A. subsidiary. Accordingly, the Company recognized a liability for the fair value of the shares not owned
at December 31, 2020. The tender offer process was completed in the first quarter of 2021.
F-32
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. INCOME TAXES
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:
(US$ in millions)
United States
Non-United States
Total
The components of the Income tax expense are:
(US$ in millions)
Current:
United States
Non-United States
Deferred:
United States
Non-United States
Total
Year Ended December 31,
2021
2020
2019
$
$
754 $
207 $
1,811
1,206
2,565 $
1,413 $
(4)
(1,201)
(1,205)
Year Ended December 31,
2021
2020
2019
$
169 $
(4) $
501
670
10
(282)
(272)
181
177
33
38
71
$
398 $
248 $
32
78
110
(25)
1
(24)
86
F-33
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Reconciliation of Income tax expense if computed at the U.S. Federal income tax rate to Bunge's reported Income tax
expense is as follows:
(US$ in millions)
Year Ended December 31,
2021
2020
2019
Income (loss) from continuing operations before income tax
$
2,565
$
1,413
$
(1,205)
Income tax rate
Income tax expense at the U.S. Federal tax rate
Adjustments to derive effective tax rate:
Foreign earnings taxed at different statutory rates
Valuation allowances
Fiscal incentives(1)
Foreign exchange on monetary items
Tax rate changes
Non-deductible expenses
Uncertain tax positions
Equity distributions, net
Transition tax
Incremental tax on future distributions
State taxes
Goodwill impairment - Loders
Losses on Brazilian sugar and bioenergy contribution to joint venture
Participation exemption - Loders Rotterdam sale
Other
Income tax expense
$
21 %
539
21 %
297
21 %
(253)
(99)
29
(83)
21
(4)
19
33
(4)
—
(6)
17
—
—
(53)
(11)
398
(18)
(27)
(43)
29
3
16
(11)
—
—
6
(4)
—
—
—
—
$
248
$
(66)
66
(43)
12
(8)
11
(29)
(7)
(11)
—
3
28
379
—
4
86
(1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax.
F-34
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows:
(US$ in millions)
Deferred income tax assets:
Net operating loss carryforwards
Operating lease obligations
Employee benefits
Tax credit carryforwards
Inventories
Accrued expenses and other
Total deferred tax assets
Less valuation allowances
Deferred tax assets, net of valuation allowance
Deferred income tax liabilities:
Property, plant and equipment
Operating lease assets
Undistributed earnings of affiliates
Investments
Intangibles
Inventories
Total deferred tax liabilities
Net deferred tax assets (liabilities)
December 31,
2021
2020
$
660 $
86
48
23
23
195
1,035
(297)
738
272
86
20
18
130
—
526
598
155
59
40
—
142
994
(316)
678
291
153
17
15
149
74
699
$
212 $
(21)
As of December 31, 2021, Bunge has determined it has unremitted earnings that are considered to be indefinitely
reinvested of approximately $1 billion, 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 $50 million.
At December 31, 2021, Bunge's pre-tax loss carryforwards totaled $2,245 million, of which $2,111 million have no
expiration, including loss carryforwards of $1,060 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. At December 31, 2020, Bunge’s pre-tax loss carryforwards totaled $2,166 million, of which
$1,778 million had no expiration, including loss carryforwards of $870 million in Brazil. The increase in pre-tax loss
carryforwards from 2020 to 2021 is primarily attributable to the Company’s generation of losses in certain jurisdictions during
the year.
The remaining tax loss carryforwards expire at various periods beginning in 2022 through the year 2039.
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, 2021 and 2020, Bunge has recorded valuation allowances of $297 million and $316 million,
respectively. The net decrease of $19 million is primarily attributable to currency translation adjustments during the year.
F-35
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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
likelihood of being ultimately realized upon settlement. At December 31, 2021 and 2020, respectively, Bunge had recorded
unrecognized tax benefits of $73 million and $50 million in Other non-current liabilities and $8 million and $2 million in Other
current liabilities in its consolidated balance sheets. During 2021, 2020 and 2019, respectively, Bunge recognized $4 million, $2
million and $(11) million of interest and penalty charges in Income tax expense in the consolidated statements of income. At
December 31, 2021 and 2020, respectively, Bunge had recorded accrued interest and penalties of $14 million and $12 million in
Other non-current liabilities and $2 million and $1 million in Other current liabilities in the consolidated balance sheets. A
reconciliation of the beginning and ending amounts of unrecognized tax benefits follows:
(US$ in millions)
Balance at January 1,
Additions based on tax positions related to the current year
Additions based on tax positions related to prior years
Reductions for tax positions of prior years
Settlements with tax authorities
Expiration of statute of limitations
Reductions due to dispositions
Foreign currency translation
Balance at December 31,
2021
2020
2019
$
320 $
311 $
390
14
22
—
(2)
(3)
—
(22)
329 $
$
3
1
(1)
(4)
(15)
—
25
320 $
2
7
(27)
(26)
(11)
(19)
(5)
311
Bunge believes that it is reasonably possible that approximately $10 million of its unrecognized tax benefits may be
recognized by the end of 2022 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 regions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities
in significant tax regions:
North America
South America
Europe
Asia-Pacific
Open Tax Years
2013 - 2021
2015 - 2021
2015 - 2021
2006 - 2021
As of December 31, 2021, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2016
of approximately 5,475 million Brazilian reais (approximately $981 million) plus applicable interest on the outstanding
amount. Bunge has recorded unrecognized tax benefits related to these assessments of 19 million Brazilian reais (approximately
$3 million) as of December 31, 2021.
As of December 31, 2021, Bunge’s Argentina subsidiary had received income tax and penalty assessments relating to
2006 through 2016 of approximately 4,069 million Argentine pesos (approximately $40 million) plus applicable interest on the
outstanding amount.
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 $531 million, $140 million and $123 million during
the years ended December 31, 2021, 2020, and 2019, respectively.
In October 2021, the Organization for Economic Co-operations and Development (the "OECD") released an outline that
describes the conceptual agreement between 136 countries on fundamental reforms to international tax rules. The outline
provides for two primary "Pillars"; however, only Pillar Two, which provides for a global minimum corporate tax rate of 15%,
F-36
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
could have a negative impact on Bunge. The OECD outline suggests that these reforms be implemented by 2023, but it is
contingent upon the independent actions of participating countries to enact law changes. In December 2021, the OECD released
the Pillar Two Model Rules as approved by the OECD/G20 Inclusive Framework on BEPS. The Model Rules define the scope
and key mechanics for the Pillar Two system of global minimum tax rules, which includes the Income Inclusion Rule (IIR) and
the Under Taxed Payments Rule (UTPR), referred collectively as the "GloBE" rules. According to the timeline release in
October with agreement of member jurisdictions of the Inclusive Framework, the Pillar Two rules should be brought into
domestic law in 2022 to be effective 2023, with the exception of the UTPR which is to enter into effect in 2024. Further OECD
guidance is expected in 2022. If enacted into law, in whole or in part, this proposed change to international tax rules could have
a negative impact to Bunge’s effective tax rate.
15. FAIR VALUE MEASUREMENTS
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 each stated at their carrying value, which is a reasonable estimate of
fair value. See Note 3- Trade Structured Finance Program for trade structured finance program, Note 12- Other Non-Current
Assets for long-term receivables from farmers in Brazil, net and other long-term investments, Note 17- Short-term Debt and
Credit Facilities for short-term debt, Note 18- Long-term Debt for long-term debt, and Note 19- Employee Benefit Plans 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.
F-37
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a
recurring basis.
(US$ in millions)
Assets:
Fair Value Measurements at Reporting Date
December 31, 2021
December 31, 2020
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Readily marketable inventories (Note 5)
$ — $ 6,664 $ 205 $ 6,869 $ — $ 6,118 $ 208 $ 6,326
Trade accounts receivable (1)
—
1
—
1
—
5
—
5
Unrealized gain on derivative contracts (2):
Interest rate
Foreign exchange
Commodities
Freight
Energy
Credit
Equity
Other (3)
Total assets
Liabilities:
Trade accounts payable (4)
Unrealized loss on derivative contracts (5):
Interest rate
Foreign exchange
Commodities
Freight
Energy
Credit
—
—
63
79
44
—
49
—
49
—
100
—
340
—
340
3
531
—
100
534
1,055
34
1,152
191
2,783
63
3,037
5
4
6
—
—
—
1
—
—
84
48
6
1
14
44
—
—
—
—
14
44
—
—
—
—
—
—
—
—
91
406
—
497
15
352
—
367
$ 278 $ 8,530 $ 239 $ 9,047 $ 267 $ 9,889 $ 271 $ 10,427
$ — $ 545 $
23 $
568 $ — $ 285 $
9 $ 294
—
—
47
—
47
—
15
—
309
—
309
—
701
—
15
701
98
1,051
65
1,214
232
2,187
71
2,490
162
—
—
29
—
1
1
—
—
162
30
16
12
—
—
—
—
16
12
1
—
—
—
—
Total liabilities
$ 289 $ 1,954 $
88 $ 2,331 $ 260 $ 3,188 $
80 $ 3,528
(1) These receivables are hybrid financial instruments for which Bunge has elected the fair value option.
(2) Unrealized gains on derivative contracts are generally included in Other current assets. There were $49 million and
$111 million included in Other non-current assets at December 31, 2021 and 2020, respectively. There were $2 million
and $63 million included in Assets held for sale at December 31, 2021 and 2020, respectively.
(3) Other primarily includes the fair values of marketable securities and investments in Other current assets and Other
non-current assets.
(4) These payables are hybrid financial instruments for which the Company has elected the fair value option. There were
zero and $40 million included in Liabilities held for sale at December 31, 2021 and 2020, respectively.
(5) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $49 million and
$7 million included in Other non-current liabilities at December 31, 2021 and 2020, respectively. There were $1
million and $2 million included in Liabilities held for sale at December 31, 2021 and 2020, 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.
F-38
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 that 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 comprise 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 assets and liabilities measured at fair value on a recurring basis using Level 3 measurements.
An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable. See Note 10-
Impairments, for assets measured at fair value on a nonrecurring basis using Level 3 inputs.
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.
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, 2021 and 2020. These instruments were valued
using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
F-39
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
Balance, January 1, 2021
Total gains and losses (realized/unrealized) included in Cost of
goods sold (1)
Purchases
Sales
Issuances
Settlements
Transfers into Level 3
Transfers out of Level 3
Balance, December 31, 2021
Year Ended December 31, 2021
Readily
Marketable
Inventories
Derivatives,
Net
Trade
Accounts
Payable
Total
$
208 $
(8) $
(9) $
191
431
3,344
(5,095)
—
—
1,656
(339)
2
3
—
(2)
(49)
(17)
40
27
(252)
—
—
217
(213)
207
$
205 $
(31) $
(23) $
460
3,095
(5,095)
(2)
168
1,426
(92)
151
1) Readily marketable inventories, derivatives, net and trade accounts payable include gains/(losses) of $475 million,
$(48) million and $27 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to
Level 3 assets and liabilities still held at December 31, 2021.
(US$ in millions)
Balance, January 1, 2020
Total gains and losses (realized/unrealized) included in Cost of
goods sold (1)
Purchases
Sales
Issuances
Settlements
Transfers into Level 3
Transfers out of Level 3
Balance, December 31, 2020
Year Ended December 31, 2020
Readily
Marketable
Inventories
Derivatives,
Net
Trade
Accounts
Payable
Total
$
231 $
(24) $
(31) $
176
748
2,183
(3,202)
—
—
1,044
(796)
208 $
$
(24)
3
—
(3)
22
13
5
(8) $
19
(298)
—
—
230
(77)
148
(9) $
743
1,888
(3,202)
(3)
252
980
(643)
191
1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $544 million,
$(29) million and $19 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to
Level 3 assets and liabilities still held at December 31, 2020.
16. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company uses derivative instruments to manage several market risks, such as interest rate, foreign currency rate,
and commodity risk. Some of the hedges the Company enters into qualify for hedge accounting ("Hedge Accounting
Derivatives") and some, while intended as economic hedges, do not qualify or are not designated for 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
F-40
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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) - net, and the changes in interest rate risk are recognized in Interest expense. Changes in
basis risk are held in Accumulated other comprehensive 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 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 2022. Of the amount currently in Accumulated other comprehensive loss, $3 million of
deferred losses is expected to be reclassified to earnings in the next twelve months.
Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency
forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive loss.
For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other
comprehensive loss until the transaction affects earnings by way of either sale or substantial liquidation of the foreign
subsidiary.
The table below provides information about the balance sheet values of hedged items and the notional amount of
derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for
example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or
other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company
discloses derivative notional amounts on a gross basis.
F-41
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
Hedging instrument type:
Fair value hedges of interest rate risk
Carrying value of hedged debt
Cumulative adjustment to long-term debt from application of hedge accounting
Interest rate swap - notional amount
Fair value hedges of currency risk
Carrying value of hedged debt
Cross currency swap - notional amount
Cash flow hedges of currency risk
Foreign currency forward - notional amount
Foreign currency option - notional amount
Net investment hedges
December 31,
2021
December 31,
2020
Unit of
Measure
$
$
$
$
$
$
$
3,990 $
— $
4,006 $
2,465
92
2,382
$ Notional
$ Notional
$ Notional
267 $
267 $
297
297
$ Notional
$ Notional
148 $
60 $
182
$ Notional
90
$ Notional
Foreign currency forward - notional amount
$
1,020 $
1,875
$ 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) - net 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.
F-42
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The table below summarizes the volume of economic derivatives as of December 31, 2021 and December 31, 2020. For those
contracts traded bilaterally through the over-the-counter markets (e.g., forwards, forward rate agreements ("FRA"), FFAs, and
swaps), the gross position is provided. For exchange traded (e.g., futures and options) and cleared positions (e.g., energy
swaps), the net position is provided.
Interest rate
Swaps
FRAs
Currency
Forwards
Swaps
Futures
Options
Agricultural commodities
Forwards
Swaps
Futures
Options
Ocean freight
FFA
FFA options
Natural gas
Swaps
Futures
Electricity
Swaps
Energy - other
Swaps
Other
December 31,
2021
December 31,
2020
Long
(Short)
Long
(Short)
Unit of
Measure
$
$
$
$
$
$
2,924 $
(2,506) $
— $
— $
1,989 $
1,216 $
(1,418)
$ Notional
(805)
$ Notional
12,961 $
(14,065) $
11,272 $
(13,171)
$ Notional
1,362 $
(1,422) $
— $
88 $
(8) $
(106) $
422 $
— $
100 $
(413)
(55)
(142)
$ Notional
$ Notional
Delta
29,329,244 (34,810,969) 38,332,313 (39,743,593) Metric Tons
33,250
(502,652)
—
(1,700,972) Metric Tons
—
(7,221,848)
— (11,422,365) Metric Tons
218,106
(116,370)
—
(280,240) Metric Tons
12,010
(18,723)
3,055
548
—
—
1,764,455
5,147,500
—
—
1,040,284
7,210,000
670,973
(256,949)
—
—
—
—
—
—
Hire Days
Hire Days
MMBtus
MMBtus
Mwh
741,307
(426,476)
413,542
— Metric Tons
Swaps and futures
$
20 $
(585) $
30 $
(30)
$ Notional
F-43
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, 2021, 2020 and 2019.
Gain (Loss) Recognized in
Income on Derivative Instruments
Year Ended December 31,
2021
2020
2019
Type of derivative
Foreign currency
$
2 $
(14) $
(3)
(US$ in millions)
Income statement classification
Net sales
Hedge accounting
Cost of goods sold
Hedge accounting
Economic hedges
Total Cost of goods sold
Interest expense
Hedge accounting
Economic hedges
Total Interest expense
Commodities
Foreign currency
Commodities
Other (1)
Interest rate
Interest rate
Foreign exchange gains (losses) - net
Hedge accounting
Economic hedges
Total Foreign exchange gains (losses) - net
Foreign currency
Foreign currency
Other income
Economic hedges
Total Other income
Interest rate
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
Gains and losses on derivatives used as cash flow hedges of foreign currency risk
included in other comprehensive income (loss) during the period (2)
Gains and losses on derivatives used as cash flow hedges of commodity price risk
included in other comprehensive income (loss) during the period
Gains and losses on derivatives used as net investment hedges included in other
comprehensive income (loss) during the period
Foreign currency gains and losses on intercompany loans used as net investment
hedges included in other comprehensive income (loss) during the period
Amounts released from Accumulated other comprehensive loss during the
period
Cash flow hedge of foreign currency risk
Cash flow hedge of commodity risk
F-44
—
(7)
(1,749)
44
—
(1,250)
(225)
42
$
(1,712) $
(1,433) $
30 $
1
31 $
(28) $
64
36 $
15 $
(1)
14 $
27 $
(261)
(234) $
1
1 $
—
— $
20
172
(50)
46
188
(12)
(10)
(22)
11
33
44
—
—
(1) $
(1) $
(1)
2 $
(5) $
— $
— $
15
20
(16) $
41 $
(47)
— $
(67) $
17
(3) $
— $
3 $
— $
(5)
(20)
$
$
$
$
$
$
$
$
$
$
$
$
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(1) Other includes the results from freight, energy and other derivatives.
(2) Includes $(21) million, $(38) million and zero Bunge share of other comprehensive income (loss) related to cash flow hedges
associated with the Company's equity investment in BP Bunge Bioenergia for the years ended December 31, 2021, 2020 and
2019.
17. SHORT-TERM DEBT AND CREDIT FACILITIES
Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper
market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes
facility commitment fees, amortization of deferred financing costs, the impact of designated interest rate hedges, and charges on
certain lending transactions. The weighted-average interest rate on short-term borrowings at December 31, 2021 and 2020 was
19.62% and 5.49%, respectively.
(US$ in millions)
Commercial paper program
Revolving credit facilities
Short-term lines of credit, variable interest rates from 0.56% to 42.50%
Total short-term debt (1) (2)
December 31,
2021
2020
$
$
— $
—
673
673 $
549
944
1,335
2,828
(1) Includes $566 million and $558 million of local currency borrowings in certain European, South American and Asia-
Pacific countries at a local currency based weighted average interest rate of 23.14% and 24.54% as of December 31,
2021 and December 31, 2020, respectively.
(2) Includes secured debt of $41 million and zero at December 31, 2021 and December 31, 2020, respectively.
Bunge has a $600 million commercial paper program, which is supported by an identical amount of committed back-up
bank credit lines (the "Liquidity Facility") provided by banks that are 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
issuing under Bunge's commercial paper program. At December 31, 2021, there were no borrowings outstanding under the
commercial paper program and no borrowings outstanding under the Liquidity Facility. At December 31, 2020, there were
$549 million of borrowings outstanding under the commercial paper program and no borrowings outstanding under the
Liquidity Facility. The Liquidity Facility is Bunge's only revolving credit facility that requires lenders to maintain minimum
credit ratings. On July 16, 2021, Bunge amended and extended the Liquidity Facility to July 16, 2026.
On July 16, 2021, Bunge entered into an unsecured $1 billion 364-day Revolving Credit Agreement (the "$1 Billion
Credit Agreement") with a group of lenders, maturing on July 15, 2022. Bunge may from time to time request one or more of
the existing or new lenders to increase the total participations under the $1 Billion Credit Agreement by an aggregate amount up
to $250 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as
defined in the $1 Billion Credit Agreement. The $1 Billion Credit Agreement replaced the $1.25 billion 364-day Revolving
Credit Agreement that was set to mature on October 21, 2021. Bunge had no borrowings outstanding at December 31, 2021
under the $1 Billion Credit Agreement.
F-45
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
On July 16, 2021, Bunge entered into an unsecured committed $1.35 billion 5-year Revolving Credit Agreement (the
"$1.35 Billion Credit Agreement") with a group of lenders, maturing July 16, 2026. Bunge may, from time to time, request one
or more of the existing or new lenders to increase the total commitments under the $1.35 Billion Credit Agreement by an
aggregate amount up to $200 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an
applicable margin, as defined in the $1.35 Billion Credit Agreement. The $1.35 Billion Credit Agreement replaced the
$1.1 billion five-year syndicated revolving credit agreement that was set to mature on December 14, 2023. Bunge had no
borrowings outstanding at December 31, 2021 under the $1.35 Billion Credit Agreement.
On October 29, 2021, Bunge entered into an unsecured $865 million Revolving Credit Agreement (the "$865 Million
2026 Facility") with a group of lenders, set to mature on October 29, 2026. Borrowings will bear interest at LIBOR plus an
applicable margin, as defined in the $865 Million 2026 Facility. The $865 Million 2026 Facility replaced the $865 million
revolving credit facility that was set to mature on September 6, 2022. Bunge had no borrowings outstanding at December 31,
2021 under the $865 Million 2026 Facility.
On December 16, 2021, Bunge entered into an unsecured $1.75 billion revolving credit facility ("$1.75 Billion
Revolving Credit Facility") set to mature on December 16, 2024. The interest rate under the $1.75 Billion Revolving Credit
Facility is tied to certain sustainability criteria, including, but not limited to, recently established science based targets that
define Bunge's climate goals within its operations and a commitment to eliminate deforestation in its supply chains by 2025.
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 by an amount not to exceed $250 million pursuant to an accordion provision set forth in the
$1.75 Billion Revolving Credit Facility. Borrowings under the $1.75 Billion 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. Bunge will also pay a fee that will vary from 0.10% to 0.40% based
on its utilization of the Revolving Credit Facility. The $1.75 Billion Revolving Credit Facility replaced the $1.75 billion
revolving credit facility that was set to mature on December 12, 2022. There were no borrowings outstanding at December 31,
2021 under the $1.75 Billion Revolving Credit Facility.
At December 31, 2021, Bunge had $5,815 million unused and available committed borrowing capacity comprising
committed revolving credit facilities and the commercial paper program, totaling $5,565 million with a number of financial
institutions, in addition to a committed unsecured $250 million delayed draw term loan (see Note 18- Long-term Debt). At
December 31, 2020, Bunge had total committed revolving credit facilities of $5,565 million with a number of financial
institutions, of which $4,072 million was unused and available.
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, 2021
and 2020, there were zero and $550 million borrowings outstanding, respectively, 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 $673
million and $785 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2021 and 2020,
respectively, to support working capital requirements.
On February 25, 2021, Bunge entered into an unsecured $250 million 364-day term loan (the "$250 Million Term Loan"),
scheduled to mature on February 24, 2022. On October 29, 2021 Bunge prepaid the outstanding balance of the $250 Million
Term Loan.
On February 23, 2021, Bunge entered into an unsecured $125 million 364-day term loan (the "$125 Million Term Loan"),
scheduled to mature on February 22, 2022. On July 16, 2021 Bunge prepaid the outstanding balance of the $125 Million Term
Loan.
Bunge's credit facilities require it to comply with specified financial covenants related to minimum net worth, minimum
current ratio, a maximum debt to capitalization ratio, and limitations on secured indebtedness. Bunge was in compliance with
these covenants at December 31, 2021.
F-46
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. LONG-TERM DEBT
Long-term debt obligations are summarized below.
(US$ in millions)
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) (3)
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B)
3.00% Senior Notes due 2022
1.85% Senior Notes due 2023—Euro
4.35% Senior Notes due 2024
1.63% Senior Notes due 2025
3.25% Senior Notes due 2026
3.75% Senior Notes due 2027
2.75% Senior Notes due 2031
Other
Subtotal
Less: Current portion of long-term debt (1)
Total long-term debt (2)
December 31,
2021
2020
$
267 $
89
399
906
598
596
697
596
989
154
297
89
399
982
597
595
696
595
—
210
5,291
(504)
4,460
(8)
$
4,787 $
4,452
(1) Includes secured debt of $2 million and $1 million at December 31, 2021 and December 31, 2020, respectively.
(2) Includes secured debt of $50 million and $5 million at December 31, 2021 and December 31, 2020, respectively.
(3) Effective January 1, 2022, the three-month Yen LIBOR rate was discontinued and replaced by the Tokyo Overnight
Average Rate ("TONAR" or "TONA").
The fair values of long-term debt, including current portion, are calculated based on interest rates currently available on
comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-
term debt are as follows:
(US$ in millions)
December 31, 2021
December 31, 2020
Carrying
Value
Fair Value
(Level 2)
Carrying
Value
Fair Value
(Level 2)
Long-term debt, including current portion
$
5,291 $
5,489
$
4,460 $
4,646
On May 14, 2021, Bunge completed the sale and issuance of $1 billion aggregate principal amount of 2.750% unsecured
senior notes (the "2.75% Senior Notes") due May 14, 2031. The 2.75% Senior Notes are fully and unconditionally guaranteed
by Bunge. The offering was made pursuant to a shelf registration statement on Form S-3 (Registration No. 333-231083) filed
by the Company and its 100% owned finance subsidiary Bunge Limited Finance Corp. with the U.S. Securities and Exchange
Commission. Interest on the 2.75% Senior Notes is payable semi-annually in arrears in November and May of each year,
commencing on November 14, 2021. At any time prior to February 14, 2031 (three months before maturity of the 2.75% Senior
Notes), the Company may elect to redeem and repay the 2.75% Senior Notes, at any time in whole, or from time to time in part,
at a redemption price substantially equal to 100% of the principal amount of the 2.75% Senior Notes being redeemed on the
redemption date. The net proceeds of the offering were approximately $990 million after deducting underwriting commissions,
the original issue discount and offering fees and expenses payable by Bunge. Bunge used the net proceeds from this offering for
general corporate purposes, including the repayment of certain short-term debt.
On October 29, 2021, Bunge entered into an unsecured $250 million delayed draw term loan (the "$250 Million Delayed
Draw Term Loan") with a group of lenders that is required to be drawn by October 29, 2022. The $250 Million Delayed Draw
Term Loan will bear interest at LIBOR plus an applicable margin, as defined in the $250 Million Delayed Draw Term Loan.
The $250 Million Delayed Draw Term Loan matures on October 29, 2028 and was not drawn as of December 31, 2021.
F-47
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Certain property, plant and equipment, and investments in consolidated subsidiaries having a net carrying value of
approximately $54 million at December 31, 2021 have been mortgaged or otherwise collateralized against long-term debt of
$50 million at December 31, 2021.
Principal Maturities—Principal maturities of long-term debt at December 31, 2021 are as follows:
(US$ in millions)
2022
2023
2024
2025
2026
Thereafter
Total (1)
$
$
508
945
959
601
700
1,603
5,316
(1) Includes components of long-term debt attributable to unamortized premiums of $26 million and excludes components
of long-term debt attributable to fair value hedge accounting of $1 million.
Certain of Bunge's term loans 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, 2021.
During the years ended December 31, 2021, 2020 and 2019, Bunge paid interest, net of interest capitalized, of $285
million, $264 million, and $327 million, respectively.
On February 23, 2022, Bunge Limited delivered a redemption notice for all of its 4.35% senior notes due 2024 (2024
Notes) pursuant to the terms of indenture governing the 2024 Notes. Following such redemption, which is expected to be
completed during the first quarter of 2022, the 2024 Notes will be cancelled and will no longer be outstanding. Additionally, the
Company will recognize a one-time charge of approximately $40 million to $50 million within Interest expense during the first
quarter of 2022 comprising the sum of the “make whole” provision payable in respect of the early redemption and the
recognition of unrealized mark-to-market losses on related, designated interest rate hedges.
19. EMPLOYEE BENEFIT PLANS
Certain of Bunge's United States, Canadian, European, Asian and Brazilian-based subsidiaries sponsor defined benefit
pension plans covering substantially all employees of such 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 of Bunge's United States and Brazilian-based subsidiaries 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 adjustments - 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.
Plan Settlements - Subsequent to the balance sheet date, the Company, together with plan participants and related
employee unions, agreed to the transition of one of the Company’s international defined-benefit pension plans to a multi-
employer pension plan. Following the transition the Company will account for the multi-employer plan similar to a defined
contribution plan, giving rise to a settlement of the related defined-benefit plan obligations. In connection with the settlement,
during the first quarter of 2022 the Company expects to record a $3 million decrease in recorded benefit obligations and to
reclassify a pretax unamortized gain of approximately $38 million, including amounts attributable to non-controlling interests,
from Other comprehensive income to Other income - net in the consolidated statement of income.
F-48
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
On July 17, 2020, the Company approved a one-time lump sum offering to certain participants in Bunge's defined benefit
U.S. Pension Plan who had separated from the Company as of December 31, 2019 and whose benefits in the plan had fully
vested. The respective payments were completed during the fourth quarter of 2020. The payments, which were paid from plan
assets as settlement of respective benefit obligations, resulted in an $88 million decrease in benefit obligations and the
reclassification of an unamortized loss of $12 million from Other comprehensive income, which was recorded in Other income
- net on the consolidated statement of income.
In addition, during the year ended December 31, 2020, the Company incurred a small settlement in respect of one of its
international plans, resulting in the reclassification of an unamortized loss of $4 million from Other comprehensive income,
which was also recorded in Other income - net on the consolidated statement of income.
On July 24, 2020, the Company made a one-time cash contribution payment to its U.S. defined benefit pension plans of
$65 million for the year ended December 31, 2020.
Plan Transfers In and Out - There were no significant transfers into or out of Bunge's employee benefit plans during the
years ended December 31, 2021 or 2020.
Cost of Benefit Plans - Service cost is recognized in a period determined as the actuarial present value of benefits
attributed by the pension benefit formula to services rendered by employees during that period. Interest cost is the amount
recognized in a period determined as the increase in the projected benefit obligation due to the passage of time. The expected
return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of
plan assets. Amortization of net loss represents the recognition in net periodic cost over several periods of amounts previously
recognized in Other comprehensive income (loss). Service cost is included in the same income statement line item as other
compensation costs arising from services rendered during the period, while the other components of net periodic benefit
pension cost are presented separately in Other income, net.
The components of net periodic benefit costs for defined benefit pension plans and postretirement benefit plans are as
follows:
(US$ in millions)
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Amortization of net loss
Curtailment loss
Settlement loss recognized
Special termination benefit
Net periodic benefit costs
Pension Benefits
December 31,
Postretirement Benefits
December 31,
2021
2020
2019
2021
2020
2019
$
46 $
45 $
38 $
— $
— $
30
(54)
38
(51)
43
(47)
1
8
—
2
—
1
8
—
16
—
2
9
2
—
1
3
—
—
—
—
—
—
3
—
—
—
—
—
—
$
33 $
57 $
48 $
3 $
3 $
—
5
—
—
—
—
—
—
5
Assumptions used in Postretirement Benefits Calculations - At December 31, 2021, a 7.2% annual rate of increase in the
per capita cost of covered healthcare benefits was assumed for 2021 postretirement benefit plan measurement purposes,
decreasing to 6.6% by 2038, and remaining at that level thereafter. At December 31, 2020, a 6.8% annual rate of increase in the
per capita cost of covered healthcare benefits was assumed for 2020 postretirement benefit plan measurement purposes,
decreasing to 6.6% by 2038, and remaining at that level thereafter.
F-49
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension
and postretirement benefit plans are as follows:
Discount rate
Increase in future compensation levels
Pension Benefits
December 31,
Postretirement Benefits
December 31,
2021
2020
2021
2020
2.5 %
3.2 %
2.1 %
3.2 %
7.5 %
N/A
5.7 %
N/A
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:
Discount rate
Expected long-term rate of return on assets
Increase in future compensation levels
Pension Benefits
December 31,
Postretirement Benefits
December 31,
2021
2020
2019
2021
2020
2019
2.1 %
4.5 %
3.2 %
2.8 %
4.7 %
3.2 %
3.7 %
5.1 %
3.2 %
5.7 %
N/A
N/A
6.1 %
N/A
N/A
8.3 %
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.
For certain of Bunge’s plans, the discount rate is determined by 1) the yield on a hypothetical bond portfolio for which
the cash flow effectively settles the year-by-year projected benefit cash flows or 2) matching either the duration or the expected
cash flows for the pension plans to a hypothetical yield curve developed on a region-specific basis using a portfolio of available
high quality, non-callable, make-whole corporate bonds.
F-50
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, 2021 and 2020.
A measurement date of December 31 was used for all plans.
(US$ in millions)
Change in benefit obligations:
Pension Benefits
December 31,
Postretirement Benefits
December 31,
2021
2020
2021
2020
Benefit obligation at the beginning of year
$
1,453 $
1,388 $
50 $
Service cost
Interest cost
Plan amendments
Plan curtailments
Actuarial (gain) loss, net
Employee contributions
Plan settlements
Benefits paid
Expenses paid
Impact of foreign exchange rates
Benefit obligation at the end of year
Change in plan assets:
Fair value of plan assets at the beginning of year
Actual return on plan assets
Employer contributions
Employee contributions
Plan settlements
Benefits paid
Expenses paid
Impact of foreign exchange rates
Fair value of plan assets at the end of year
Unfunded status and net amounts recognized:
Plan assets less than benefit obligation
Net liability recognized in the balance sheet
Amounts recognized in the balance sheet consist of:
Non-current assets
Current liabilities
Non-current liabilities
Net liability recognized
46
30
(6)
—
(57)
3
(15)
(40)
(3)
(31)
45
38
—
(1)
84
3
(108)
(35)
(2)
41
1,380 $
1,453 $
—
3
—
—
(4)
—
—
(4)
—
(3)
42 $
1,232 $
1,114 $
— $
49
22
3
(15)
(40)
(3)
(25)
145
84
3
(108)
(35)
(2)
31
—
4
—
—
(4)
—
—
1,223 $
1,232 $
— $
(157) $
(157) $
(221) $
(221) $
38 $
(6)
(189)
(157) $
15 $
(6)
(230)
(221) $
(42) $
(42) $
— $
(4)
(38)
(42) $
$
$
$
$
$
$
$
56
—
3
(1)
—
7
1
—
(6)
—
(10)
50
—
—
5
1
—
(6)
—
—
—
(50)
(50)
—
(4)
(46)
(50)
Included in Accumulated other comprehensive loss for pension benefits at December 31, 2021 are the following amounts,
net of tax and excluding noncontrolling interest, that have not yet been recognized in net periodic benefit costs: unrecognized
prior service credit of $3 million, and unrecognized actuarial loss of $123 million.
Included in Accumulated other comprehensive loss for postretirement healthcare benefits at December 31, 2021 is the
following amount, net of tax and excluding noncontrolling interest, that has not yet been recognized in net periodic benefit
costs: unrecognized actuarial loss of $4 million.
Bunge has aggregated certain defined benefit pension plans for which the projected benefit obligations exceeds the fair
value of related plan assets with pension plans for which the fair value of plan assets exceeds related projected benefit
F-51
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
obligations. The following table provides aggregated information about pension plans with a projected benefit obligation in
excess of plan assets:
(US$ in millions)
Projected benefit obligation
Fair value of plan assets
Pension Benefits
December 31,
2021
2020
$
$
585 $
390 $
641
405
The accumulated benefit obligation for the defined pension benefit plans was $1,332 million and $1,371 million at
December 31, 2021 and 2020, respectively. The following table summarizes information related to aggregated defined benefit
pension plans with an accumulated benefit obligation in excess of plan assets:
(US$ in millions)
Projected benefit obligation
Accumulated benefit obligation
Fair value of plan assets
Pension Benefits
December 31,
2021
2020
$
$
$
306 $
291 $
115 $
618
557
383
Pension Benefit Plan Assets—The objective of the plans' trust funds is to sufficiently diversify plan assets to maintain a
reasonable level of risk without imprudently sacrificing returns.
For pension plans in the United States (the "US plans"), in 2020, Bunge hired an outside investment advisory firm to
implement a liability-driven investment strategy intended to increase the interest rate and credit risk hedge ratios and increase
the duration of pension plan assets to better match the pension benefit obligations. This strategy is intended to reduce the
funded status volatility of the US plans. For the largest US plan, derivatives are used primarily to manage risk and hedge plan
liabilities while maintaining liquidity. As part of this strategy, the plan is required to hold cash collateral associated with certain
derivatives. Target asset allocations are based on a glide path approach, which allocates more plan assets to immunizing assets,
such as intermediate and long duration fixed income instruments and treasury strips, which are intended to match the duration
and amount of the expected liabilities, and less to growth assets, such as public equities, non-core fixed income instruments and
real assets, as the funded status of the plans improve. Target asset allocations are generally 70-80% to immunizing assets and
20-30% to growth assets. For pension plans outside of the United States, the plans’ trust funds utilize a target asset allocation of
approximately 60% fixed income securities and approximately 40% equities.
Bunge implements its investment strategy through a combination of passive and actively managed mutual funds,
collective trust funds, and collective investment trusts. The Company's policy is not to invest plan assets in Bunge Limited
shares. Plan investments are stated at fair value or net asset value (NAV). For a further definition of fair value and the
associated fair value levels, refer to Note 1- Nature of Business, Basis of Presentation and Significant Accounting Policies.
F-52
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows:
(US$ in millions)
Cash
Mutual funds - equities (1)
Mutual funds - fixed income (2)
Other (3)
Total
Collective pooled funds (4)
Total investments measured at NAV as a practical expedient
Total
(US$ in millions)
Cash
Mutual funds - equities (1)
Mutual funds - fixed income (2)
Other (3)
Total
Collective pooled funds (4)
Total investments measured at NAV as a practical expedient
Total
December 31, 2021
Total
Level 1
Level 2
Level 3
$
42 $
42 $
— $
208
178
92
208
167
10
—
11
75
520 $
427 $
86 $
703 $
703
1,223 $
— $
—
427 $
— $
—
86 $
$
$
$
December 31, 2020
Total
Level 1
Level 2
Level 3
$
87 $
87 $
— $
183
197
77
183
159
31
—
38
33
544 $
460 $
71 $
688 $
688
1,232 $
— $
—
460 $
— $
—
71 $
$
$
$
—
—
—
7
7
—
—
7
—
—
—
13
13
—
—
13
(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, investments in certain government and
municipal securities, bonds, real estate and insurance contracts.
(4) Collective pooled funds are typically collective trusts valued at their net asset values (NAVs) that are calculated by the
investment manager or sponsor of the fund and have daily or monthly liquidity. Using the practical expedient in ASC
820 - Fair Value Measurements, these investments are not categorized within the fair value hierarchy, but are included
in the table above so that they can be reconciled to the line items presented in the consolidated balance sheets.
Bunge expects to contribute $21 million and $4 million to its defined benefit pension and postretirement benefit plans,
respectively, in 2022.
The following benefit payments, which reflect future service as appropriate, are expected to be paid in relation to defined
benefit pension and postretirement benefit plans:
F-53
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
2022
2023
2024
2025
2026
Next five years
Pension
Benefit Payments
Postretirement
Benefit Payments
$
53 $
54
55
56
57
293
4
4
4
4
4
19
Employee Defined Contribution Plans—Bunge also makes contributions to qualified defined contribution plans for
eligible employees. Contributions to these plans amounted to $17 million, $16 million, and $16 million during the years ended
December 31, 2021, 2020 and 2019, respectively.
20. RELATED PARTY TRANSACTIONS
Bunge purchases agricultural commodity products from certain of its unconsolidated investees and other related parties.
Such related party purchases comprised approximately 6% or less of total Cost of goods sold for each of the years ended
December 31, 2021, 2020, and 2019. Bunge also sells agricultural commodity products to certain of its unconsolidated
investees and other related parties. Such related party sales comprised approximately 2% or less of total Net sales for each of
the years ended December 31, 2021, 2020, and 2019.
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, 2021, 2020, and 2019, such services
were not material to the Company's consolidated results.
At December 31, 2021 and 2020, receivables related to the above related party transactions comprised approximately 2%
or less of total Trade accounts receivable. At December 31, 2021 and 2020, payables related to the above related party
transactions comprised approximately 5% or less of total Trade accounts payable.
Bunge believes all transaction values to be similar to those that would be conducted with third parties.
21. COMMITMENTS AND CONTINGENCIES
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,
2021 and 2020 are the following amounts related to these matters:
(US$ in millions)
Non-income tax claims
Labor claims
Civil and other claims
Total
F-54
December 31,
2021
2020
$
$
15 $
72
95
182 $
20
54
96
170
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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). In August 2017, a law was published, authorizing the
states to grant amnesty for tax debts arising from existing tax benefits granted without previous authorization and to maintain
such existing benefits still in force for up to 15 years. In December 2017, a further law was published to regulate the existing
law referenced above, which endorsed the past incentives granted by the Brazilian states. The states have validated their
incentives in accordance with this legislation. As Bunge has not received any tax assessment from the states that granted these
incentives or benefits related to their validity, no liability has been recorded in the consolidated financial statements.
On October 8, 2020, the Company was notified that the Brazilian Federal Court of Appeal ruled in favor of the
Company in a case against Brazilian tax authorities regarding the right to exclude the value of ICMS from the PIS/COFINS tax
basis. The ruling allowed the Company the right to recover amounts unduly paid from August 2009 through December 2020.
As a result of the favorable decision, Bunge recorded pre-tax recoveries of R$260 million (approximately $49 million)
primarily in 2020 for the recovery of taxes, recognized in Net sales, consistent with how the expense was originally incurred, in
the consolidated statements of income. Realization of these benefits occurred through income tax credits applied to the
Company's 2021 Brazil federal tax liability.
As of December 31, 2021, the Brazilian federal and state authorities have concluded examinations of the ICMS and
PIS/COFINS tax returns and have issued outstanding claims. The Company continues to evaluate the merits of each of these
claims and will recognize them if and when loss is considered probable. The outstanding claims comprise the following:
(US$ in millions)
ICMS
PIS/COFINS
Years Examined
1990 to Present
2004 through 2016
December 31,
2021
2020
$
$
222 $
228 $
191
208
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 challenged the claim. During 2020, the
Argentine Supreme Court ruled in favor of Bunge in the first case of these interest charges declaring that they shall be declared
extinguished. However, this tax claim is divided into a number of individual controversies that are pending at the Supreme
Court, the Federal Court of Appeals or the Tax Court.
Labor claims — The labor claims are principally 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. This proceeding was put on hold due to a court injunction obtained by one of the
defendants in a case related to the application of the statute of limitations. 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 administrative proceedings and, if unsuccessful in its
defense, can further litigate the proceedings via the judicial courts. Therefore, Bunge cannot at this time reasonably predict the
ultimate outcome in the judicial courts of the cases or sanctions, if any, that may be imposed.
F-55
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Guarantees—Bunge has issued or was a party to the following guarantees at December 31, 2021:
(US$ in millions)
Unconsolidated affiliates guarantee (1)
Residual value guarantee (2)
Other guarantees
Total
Maximum
Potential
Future
Payments
$
$
244
271
7
522
(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, certain Bunge subsidiaries have guaranteed the obligations of certain of their unconsolidated
affiliates and in connection therewith have secured their guarantee obligations through a pledge to the financial
institutions of certain of their unconsolidated affiliates' shares plus loans receivable from the unconsolidated affiliates
in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at
December 31, 2021, Bunge's potential liability was $234 million, and it has recorded a $7 million obligation related to
these guarantees within Other non-current liabilities.
(2) Bunge has issued guarantees to certain financial institutions which are party to certain operating lease arrangements for
railcars, barges and buildings. 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 2022 through 2028. At December 31, 2021,
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 guarantee 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.
Commitments—At December 31, 2021, Bunge had approximately $426 million of purchase commitments related to
inventories, $231 million of freight supply agreements not accounted for as leases, $101 million of power supply contracts, $72
million of contractual commitments related to construction in progress, and $215 million of other purchase commitments and
obligations, such as take-or-pay contracts, throughput contracts, and debt commitment fees.
Bunge has also entered into standby letters of credit and surety bonds with financial institutions primarily relating to the
guarantee of our future performance on certain contracts. Amounts on outstanding standby letter of credit agreements and
surety bonds aggregated to $1,405 million and $1,226 million as of December 31, 2021 and 2020, respectively.
22. OTHER NON-CURRENT LIABILITIES
(US$ in millions)
Labor, legal and other provisions
Pension and post-retirement obligations (1)
Uncertain income tax positions (2)
Unrealized losses on derivative contracts, at fair value (3)
Other
Total
(1) See Note 19- Employee Benefit Plans.
(2) See Note 14- Income Taxes.
(3) See Note 15- Fair Value Measurements.
F-56
December 31,
2021
2020
$
187 $
227
73
49
122
$
658 $
175
276
50
7
149
657
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
23. REDEEMABLE NONCONTROLLING INTERESTS
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 via a charge 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.
24. EQUITY
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. Under this program, 1,298,384 common shares were repurchased for $100
million during the year ended December 31, 2021, and 2,546,000 common shares were repurchased for $100 million during the
year ended December 31, 2020. Total repurchases under the program from its inception in May 2015 through December 31,
2021 were 8,551,824 shares for $500 million, thereby completing the program.
Effective October 25, 2021, Bunge's Board of Directors approved a new program for the repurchase of up to $500 million
of its issued and outstanding common shares. The program has no expiration date, and there have been no repurchases under
this program as of December 31, 2021.
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, 2021. 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 1.2799 common shares based on a conversion price of $78.1322 per convertible
preference share, subject in each case to certain specified anti-dilution adjustments (which represents 8,830,904 Bunge Limited
common shares at December 31, 2021).
At any time, 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, and if declared
by Bunge's Board of Directors. The dividends may be paid in cash, common shares, or a combination thereof. Accumulated
unpaid dividends on the convertible preference shares do not bear interest. In each of the years ended December 31, 2021, 2020
and 2019, Bunge recorded $34 million of dividends, paid in cash, on its convertible preference shares.
Accumulated other comprehensive loss Attributable to Bunge—The following table summarizes the balances of related
after-tax components of Accumulated other comprehensive loss attributable to Bunge:
F-57
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Foreign
Exchange
Translation
Adjustment (1)
Deferred
Gains
(Losses)
on Hedging
Activities
Pension and
Other
Postretirement
Liability
Adjustments
Accumulated
Other
Comprehensive
Loss
$
(6,637) $
(145)
(153)
(US$ in millions)
Balance January 1, 2019
Other comprehensive (loss) income before reclassifications
Amount reclassified from accumulated other comprehensive loss
Net-current period other comprehensive income (loss)
Balance, December 31, 2019
Other comprehensive (loss) income before reclassifications
(119)
1,493
1,374
(5,263) $
(594)
Amount reclassified from Accumulated other comprehensive loss
—
Net-current period other comprehensive (loss) income
Balance, December 31, 2020
Other comprehensive (loss) income before reclassifications
(594)
(5,857) $
(236)
Amount reclassified from Accumulated other comprehensive loss
—
1
(26)
(25)
(170)
(45)
—
(45)
(215)
(36)
(3)
Net-current period other comprehensive (loss) income
Balance, December 31, 2021
(236)
(6,093) $
$
(39)
(254) $
(24)
(14)
(38)
(191)
3
14
17
(174)
51
(1)
50
(124) $
(6,935)
(142)
1,453
1,311
(5,624)
(636)
14
(622)
(6,246)
(221)
(4)
(225)
(6,471)
(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. 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 loss.
F-58
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
25. EARNINGS PER COMMON SHARE
The following table sets forth the computation of basic and diluted earnings per common share:
(US$ in millions, except for share data)
Net income (loss)
Net (income) loss attributable to noncontrolling interests and redeemable
noncontrolling interests
Income (loss) attributable to Bunge
Convertible preference share dividends
Adjustment of redeemable noncontrolling interest (1)
Year Ended December 31,
2021
2020
2019
$
2,167 $
1,165 $
(1,291)
(89)
(20)
11
2,078
1,145
(1,280)
(34)
—
(34)
10
(34)
(8)
Net income (loss) available to Bunge common shareholders - Basic
Add back convertible preference share dividends
Net income (loss) available to Bunge common shareholders - Diluted
$
$
2,044 $
1,121 $
(1,322)
34
34
—
2,078 $
1,155 $
(1,322)
Weighted-average number of common shares outstanding:
Basic
Effect of dilutive shares:
—stock options and awards (2)
—convertible preference shares (3)
Diluted
Earnings (loss) per common share:
141,015,388
140,693,658
141,492,289
2,520,420
8,830,904
312,907
8,683,251
—
—
152,366,712
149,689,816
141,492,289
Net income (loss) attributable to Bunge common shareholders—basic
Net income (loss) attributable to Bunge common shareholders—diluted
$
$
14.50 $
13.64 $
7.97 $
7.71 $
(9.34)
(9.34)
(1) The redemption value adjustment of the Company's redeemable noncontrolling interest is (deducted from) added to
Income (loss) attributable to Bunge as discussed further in Note 23- Redeemable Noncontrolling Interest.
(2) The weighted-average common shares outstanding-diluted excludes approximately 1 million, 6 million, and 7 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, 2021, 2020, and 2019, respectively.
(3) Weighted-average common shares outstanding-diluted for the year ended December 31, 2019 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.
F-59
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
26. SHARE-BASED COMPENSATION
For the years ended December 31, 2021, 2020, and 2019, Bunge recognized approximately $61 million, $71 million, and
$39 million, respectively, of total compensation expense related to its stock option and restricted stock unit equity awards.
During the years ended December 31, 2021, 2020, and 2019, 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-based) or other equity-based awards. 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, and forfeitures are recognized as they occur. Bunge elected to cease awarding stock options to its employees beginning
January 1, 2021. Any awards previously granted will continue to vest as awarded.
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. The Company has two types of RSUs:
time-based restricted stock units ("TBRSUs") and performance-based restricted stock units ("PBRSUs"). Restrictions on
TBRSUs are based on continued service by the recipient through the designated term. Restrictions on PBRSUs are based on the
achievement of certain performance targets, including earnings per share, return on invested capital, and relative total
shareholder return, with the number of PBRSUs earned varying based on the level of achievement against these performance
targets. 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, and forfeitures are recognized as they occur. In locations 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 also established the Bunge Limited 2017 Non-Employee Directors Equity Incentive Plan (the "2017 NED Plan"),
a shareholder approved plan. Under the 2017 NED 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.
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 three most recent 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.
F-60
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Assumptions:
Expected option term (in years)
Expected dividend yield
Expected volatility
Risk-free interest rate
December 31,
2021(1)
2020
2019
—
— %
— %
— %
6.69
4.64 %
27.42 %
0.70 %
5.97
3.81 %
25.91 %
2.36 %
(1) No options granted during 2021 as Bunge ceased awarding stock options to employees beginning January 1, 2021.
A summary of option activity under the plans for the year ended December 31, 2021 is presented below:
Options
Outstanding at January 1, 2021
Exercised
Forfeited or expired
Outstanding at December 31, 2021 (1)
Exercisable at December 31, 2021
(1) Includes 53,160 options to be cash settled.
Shares
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
5,397,349 $
(1,983,574)
(214,520)
3,199,255
2,473,059 $
64.92
68.06
75.15
62.28
66.94
5.23 $
4.45 $
99
65
The weighted-average grant date fair value of options granted during the years ended December 31, 2020 and 2019 was
$5.89 and $9.07, respectively. There were no options granted during the year ended December 31, 2021. The total intrinsic
value of options exercised during the years ended December 31, 2021, 2020 and 2019 was approximately $30 million, $2
million and $1 million, respectively.
At December 31, 2021, $2 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, 2021 is presented
below.
Restricted Stock Units
Time-based restricted stock units at January 1, 2021
TBRSUs Granted
Vested/issued (1)
Forfeited
Time-based restricted stock units at December 31, 2021 (2) (3)
Performance-based restricted stock units at January 1, 2021
PBRSUs Granted
Additional PBRSUs granted on achievement of performance targets
Vested/issued (1)
Forfeited
Performance-based restricted stock units at December 31, 2021 (2)
Shares
Weighted-Average
Grant-Date
Fair Value
1,098,596 $
469,589
(431,377)
(25,520)
1,111,288 $
909,357 $
313,447
172,716
(373,476)
(9,691)
1,012,353
51.06
79.15
57.54
53.61
60.38
54.01
85.15
75.99
75.99
47.38
59.36
Total restricted stock units at December 31, 2021 (2)
2,123,641 $
59.89
F-61
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(1) During the year ended December 31, 2021, Bunge issued a total of 598,486 common shares, net of common shares
withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair
value of $66.10 per share upon vesting of TBRSUs and PBRSUs.
(2) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying
restricted stock units.
(3) Includes 15,111 TBRSUs to be cash settled.
At December 31, 2021, there was approximately $78 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, 2021 was approximately $53 million.
Common Shares Reserved for Share-Based Awards—The 2017 NED Plan and the 2016 EIP provide that 320,000 and
10,900,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards
under the plans. During 2021, Bunge shareholders approved an increase to the 2017 NED Plan of 200,000 common shares, and
during 2020, Bunge shareholders approved an increase to the 2016 EIP of 5,100,000 common shares. At December 31, 2021,
196,808 and 4,529,371 common shares were available for future grants under the 2017 NED Plan and the 2016 EIP,
respectively. No shares are currently available for grant under any other Bunge Limited equity incentive plan.
27. LEASES
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 consolidated balance sheets and the related lease expense is recognized on a
straight-line basis over the lease term.
The Company’s leases range in length of term, with a weighted average remaining lease term of 4.0 years, but with
one water rights lease for up to 90 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 at 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, 2021, such weighted average discount rate
was 3.3%.
Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars 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. All such variable payments, other than those that depend on an index or
rate, 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
21- Commitments and Contingencies). None of the Company’s lease agreements contain material restrictive covenants.
F-62
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of lease expense were as follows:
(US$ in millions)
Operating lease cost
Short-term lease cost
Variable lease cost
Sublease income
Total lease cost
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease liability principal payments
Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease obligations
Year Ended December 31,
2021
2020
343 $
1,439
79
(309)
1,552 $
279
637
10
(82)
844
Year Ended December 31,
2021
2020
343 $
279
384 $
309
$
$
$
$
Maturities of lease liabilities for operating leases as of December 31, 2021, are as follows:
(US$ in millions)
2022
2023
2024
2025
2026
Thereafter
Total lease payments (1)
Less imputed interest
Present value of lease liabilities
Less present value of lease liabilities held for sale
Present value of lease liabilities, as separately presented on the consolidated balance sheet
$
$
$
372
227
127
73
53
78
930
(71)
859
(3)
856
(1) Minimum lease payments have not been reduced by minimum sublease income receipts of $31 million due in
future periods under non-cancelable subleases as of December 31, 2021. Non-cancelable subleases primarily relate to
agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately four
years, as well as an agreement in which the Company subleases storage tanks with remaining sublease terms of approximately
four years. Additionally, from time to time, 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.
The Company is expected to have an additional operating lease for ocean freight vessels that has not yet commenced,
of $12 million over the life of the lease, as well as a sublease for ocean freight vessels that has not yet commenced with income
of $46 million over the life of the sublease. The operating lease is expected to commence in 2022, with a lease term of two
years. The sublease is expected to commence early in 2022, with a lease term of three years.
F-63
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
28. SEGMENT INFORMATION
Effective January 1, 2021, the Company changed its reporting segments to align with its new value chain operational
structure. Additionally, effective July 1, 2021, the company changed its reporting of certain income tax assets and liabilities to
report such assets and liabilities within Corporate and Other rather than within the reportable segments in its new value chain
operational structure.
Prior period amounts have been reclassified to conform to current presentation for these changes in reporting; see Note
1- Nature of Business, Basis of Presentation and Significant Accounting Policies.
The Company's operations are organized, managed and classified into four reportable segments - Agribusiness,
Refined and Specialty Oils, Milling, and Sugar and Bioenergy, organized based upon their similar economic characteristics,
products and services offered, production processes, types and classes of customer, and distribution methods. The Company’s
remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as
Corporate and Other.
The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high
volume and low margin. The Refined and Specialty Oils segment involves the processing, production and marketing of
products derived from vegetable oils. The Milling segment involves the processing, production and marketing of products
derived primarily from wheat and corn. The Sugar & Bioenergy segment primarily comprises the net earnings from the
Company’s 50% interest in BP Bunge Bioenergia, a joint venture formed in December 2019 through the combination of the
Company’s Brazilian sugar and bioenergy operations, together with the Brazilian biofuels business of BP p.l.c. ("BP"). Prior to
December 2019, the Company’s Sugar and Bioenergy results reflect its 100% ownership interest in the Brazilian sugarcane
growing and milling, and sugarcane-based ethanol production activities contributed to the joint venture.
Corporate and Other includes salaries and overhead for corporate functions that are not allocated to the Company’s
individual reporting segments because the operating performance of such reporting segments is evaluated by the Company's
chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the
Company's captive insurance program, accounts receivable securitization activities, and certain income tax assets and liabilities.
Transfers between the segments are generally valued at market. The segment revenues generated from these transfers
are shown in the following table as "Inter-segment revenues."
(US$ in millions)
Net sales to external customers
Inter–segment revenues
Foreign exchange gains (losses) –
net
EBIT - Noncontrolling interests (1)
Other income – net
Income (loss) from affiliates
Segment EBIT (2)
Depreciation, depletion and
amortization
Total assets
Capital Expenditures
As of, and for the year ended, December 31, 2021
Agribusiness
Refined and
Specialty
Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Eliminations
Total
$
43,636 $
8,134
13,332 $
456
1,909 $
192
270 $
—
5 $
—
— $
(8,782)
59,152
—
(24)
(28)
215
56
2,290
(1)
(73)
239
—
666
(2)
(1)
—
(2)
(74)
(206)
15,989
236
(149)
4,152
92
(39)
1,323
28
—
—
1
106
112
—
211
—
(11)
3
54
—
(333)
(30)
2,144
43
—
—
—
—
—
—
—
—
(38)
(99)
509
160
2,661
(424)
23,819
399
F-64
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
Net sales to external customers
Inter–segment revenues
Foreign exchange gains (losses) –
net
EBIT - Noncontrolling interests (1)
Other income (expense) – net
Income (loss) from affiliates
Segment EBIT (3)
Depreciation, depletion and
amortization
Total assets
Capital Expenditures
(US$ in millions)
Net sales to external customers
Inter–segment revenues
Foreign exchange gains (losses) –
net
EBIT - Noncontrolling interests (1)
Other income (expense) – net
Income (loss) from affiliates
Segment EBIT (4)
Depreciation, depletion and
amortization
Total assets
Capital Expenditures
As of, and for the year ended, December 31, 2020
Agribusiness
Refined and
Specialty
Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Eliminations
Total
$
30,047 $
9,599 $
1,616 $
142 $
— $
— $
41,404
5,123
266
252
—
—
(5,641)
—
150
(21)
42
47
(2)
(2)
95
—
1,560
440
4
—
(1)
(1)
91
(211)
17,453
202
(149)
3,629
106
(45)
1,256
22
—
—
2
(92)
(87)
—
160
13
(2)
—
(12)
(1)
(371)
(30)
1,157
22
—
—
—
—
—
—
—
—
150
(23)
126
(47)
1,633
(435)
23,655
365
As of, and for the year ended, December 31, 2019
Agribusiness
Refined and
Specialty
Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Eliminations
Total
$
28,920 $
9,193 $
1,739 $
1,288 $
— $
— $
41,140
1
—
(4,949)
—
4,784
153
(36)
1
65
42
737
(239)
11,727
220
(1)
7
(121)
—
121
(155)
3,479
149
11
6
(2)
22
—
96
(89)
—
(66)
(1)
3
—
89
(1)
(1,597)
(248)
(54)
1,339
24
(72)
434
118
(28)
1,338
13
—
—
—
—
—
—
—
—
(117)
6
(11)
40
(891)
(548)
18,317
524
(1) Includes Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests adjusted for
noncontrolling interests' share of interest and taxes.
(2) 2021 EBIT includes a $158 million gain in the Agribusiness segment on the sale of a portfolio of interior grain
elevators located in the United States (U.S. Grain Disposition), recorded in Other income - net, $170 million in gains
in the Refined and Specialty Oils segment on sales of assets, comprised of a $151 million gain on sale of our
Rotterdam Oils Refinery, at Bunge’s 70% share, and a $19 million gain on sale of an oils packaging facility in Mexico,
both recorded in Other income - net, a $35 million fixed asset impairment charge in the Refined and Specialty Oils
segment, at Bunge’s 70% share, recorded in Cost of goods sold, and $170 million of expense in the Milling segment
related to the classification of our Mexican wheat milling business as held-for-sale, recorded in Cost of goods sold.
(3) 2020 EBIT includes a $98 million gain in the Refined and Specialty Oils segment in Brazil, on the sale of certain
margarine and mayonnaise assets, recorded in Other income-net.
(4) 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, recorded in Other income-net.
Additionally, 2019 EBIT includes a $19 million gain in the Milling segment on the sale of certain Brazilian wheat
milling assets, recorded in Other income-net. Bunge also recorded pre-tax impairment charges of $1,825 million, of
F-65
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
which $37 million, $1,678 million and $110 million are recorded in Selling, general and administrative expenses, Cost
of goods sold and Other income—net, respectively. Of these pre-tax impairment charges, $1,535 million was allocated
to Sugar and Bioenergy, $148 million to Refined and Specialty Oils, $91 million to Agribusiness, $28 million to
Milling, and $22 million to Corporate - Other.
Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's
management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of
operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its
financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in
Bunge's industries.
A reconciliation of Net income (loss) attributable to Bunge to Total segment EBIT follows:
(US$ in millions)
Net income (loss) attributable to Bunge
Interest income
Interest expense
Income tax expense
Noncontrolling interests' share of interest and tax
Total segment EBIT from continuing operations
Net sales by product group to external customers were as follows:
(US$ in millions)
Agricultural Commodity Products
Refined and Specialty Oil Products
Wheat Milling Products
Corn Milling Products
Sugar and Bioenergy Products
Other Products
Total
Year Ended December 31,
2021
2020
2019
$
2,078 $
1,145 $
(1,280)
(48)
(22)
243
398
265
248
(10)
(3)
(31)
339
86
(5)
$
2,661 $
1,633 $
(891)
Year Ended December 31,
2021
43,636 $
13,332
1,326
583
270
5
59,152 $
2020
30,047 $
9,599
978
638
142
—
41,404 $
2019
28,920
9,193
1,057
682
1,288
—
41,140
$
$
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:
(US$ in millions)
Net sales to external customers:
Europe
United States
Asia-Pacific
Brazil
Argentina
Canada
Rest of world
Total
Year Ended December 31,
2021
2020
2019
$
22,249 $
14,998 $
15,278
14,660
12,334
4,520
2,669
1,839
881
10,494
8,564
4,396
817
1,314
821
9,147
8,019
5,195
1,015
1,246
1,240
$
59,152 $
41,404 $
41,140
F-66
BUNGE LIMITED AND SUBSIDIARIES
2021 Bunge Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(US$ in millions)
Long-lived assets: (1)
Brazil
United States
Europe
Asia-Pacific
Canada
Argentina
Rest of world
Total
Year Ended December 31,
2021
2020
$
$
490 $
1,143
1,009
394
307
141
15
3,499 $
508
1,112
1,063
446
300
131
215
3,775
(1) Long-lived assets comprise Property, plant and equipment, net.
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:
(US$ in millions)
Sales from other arrangements
Agribusiness
Refined and
Specialty Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Total
$
41,032 $
1,024 $
21 $
264 $
— $
42,341
Sales from contracts with customers
2,604
12,308
1,888
6
Net sales to external customers
$
43,636 $
13,332 $
1,909 $
270 $
5
16,811
5 $
59,152
Year Ended December 31, 2021
(US$ in millions)
Sales from other arrangements
Agribusiness
Refined and
Specialty Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Total
$
28,559 $
2,142 $
31 $
139 $
— $
30,871
Sales from contracts with customers
1,488
7,457
1,585
3
—
10,533
Net sales to external customers
$
30,047 $
9,599 $
1,616 $
142 $
— $
41,404
Year Ended December 31, 2020
(US$ in millions)
Sales from other arrangements
Agribusiness
Refined and
Specialty Oils
Milling
Sugar and
Bioenergy
Corporate &
Other
Total
Year Ended December 31, 2019
$
27,456 $
1,953 $
72 $
729 $
559
— $
30,210
—
10,930
Sales from contracts with customers
1,464
7,240
1,667
Net sales to external customers
$
28,920 $
9,193 $
1,739 $
1,288 $
— $
41,140
F-67
2021 Bunge Annual Report
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
29. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(US$ in millions, except per share data)
First
Second
Third
Fourth
Year
Quarter
2021
Net sales
Gross profit
Net income (loss)
Net income (loss) attributable to Bunge
Earnings (loss) per common share—basic(1)
$
12,961 $
15,391 $
14,117 $
16,683 $
59,152
1,147
917
831
665
369
362
862
649
653
689
232
231
3,363
2,167
2,078
Net income (loss) attributable to Bunge common shareholders
Earnings (loss) per common share—diluted(1)
Net income (loss) attributable to Bunge common shareholders
$
$
5.86 $
2.50 $
4.56 $
1.58 $
14.50
5.52 $
2.37 $
4.28 $
1.52 $
13.64
2020
Net sales
Gross profit
Net income (loss)
Net income (loss) attributable to Bunge
Earnings (loss) per common share—basic(1)
$
9,173 $
9,462 $
10,159 $
12,610 $
41,404
174
(193)
(184)
1,105
522
516
602
267
262
904
569
551
2,785
1,165
1,145
Net income (loss) attributable to Bunge common shareholders
Earnings (loss) per common share—diluted(1)
Net income (loss) attributable to Bunge common shareholders
$
$
(1.46) $
3.62 $
1.90 $
3.94 $
7.97
(1.46) $
3.47 $
1.84 $
3.74 $
7.71
(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,
2021 and 2020 may not equal the total computed for the year.
30. SUBSEQUENT EVENTS
On February 21, 2022, Bunge entered into a series of agreements with Chevron Corporation to form a joint venture to,
among other things, help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. Bunge will
contribute certain property, plant and equipment related to two of its soybean processing facilities and Chevron Corporation
will contribute an approximately equal value of cash and working capital to the newly formed joint venture. The joint venture
agreements are subject to customary closing conditions, including regulatory approval.
As of the date of issuance of this Annual Report on Form 10-K, Bunge is monitoring the military conflict involving
Russia and Ukraine. Bunge maintains operations in both countries, which represent key international grain originating regions.
The outcome of the ongoing conflict is uncertain. Bunge's operations in Ukraine have been interrupted and a continuation of the
conflict may have a material adverse effect on Bunge's Ukrainian operations. At December 31, 2021, Bunge had total assets and
total liabilities of $681 million and $484 million, respectively, in Ukraine.
Additionally, in response to the conflict, the United States, other North Atlantic Treaty Organization member states, as
well as non-member states, have announced targeted economic sanctions on Russia, certain Russian citizens and enterprises.
The continuation of the conflict may trigger a series of additional economic and other sanctions enacted by the United States,
other North Atlantic Treaty Organization member states, and other countries. As Bunge maintains operations in Russia, any
such sanctions may also result in an adverse effect on Bunge's Russian operations. At December 31, 2021, Bunge had total
assets and total liabilities of $121 million and $36 million, respectively, in Russia.
F-68
SIGNATURES
2021 Bunge Annual Report
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: February 24, 2022
By:
/s/ JOHN W. NEPPL
John W. Neppl
Executive Vice President and Chief Financial Officer
BUNGE LIMITED
S-1
2021 Bunge Annual Report
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on the dates indicated.
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
February 24, 2022
/s/ GREGORY A. HECKMAN
Gregory A. Heckman
Chief Executive Officer and Director
/s/ JOHN W. NEPPL
John W. Neppl
Executive Vice President and Chief Financial Officer
/s/ J. MATT SIMMONS, JR.
J. Matt Simmons, Jr.
Controller and Principal Accounting Officer
/s/ SHEILA BAIR
Sheila Bair
Director
/s/ CAROL M. BROWNER
Carol M. Browner
Director
/s/ PAUL FRIBOURG
Paul Fribourg
Director
/s/ J. ERIK FYRWALD
J. Erik Fyrwald
Director
/s/ BERNARDO HEES
Bernardo Hees
Director
/s/ KATHLEEN W. HYLE
Kathleen W. Hyle
Director and Chair of the Board of Directors
/s/ HENRY W. WINSHIP
Henry W. Winship
Director
/s/ MARK N. ZENUK
Mark N. Zenuk
Director
/s/ MICHAEL KOBORI
Michael Kobori
Director
/s/ KENNETH SIMRIL
Kenneth Simril
Director
By:
By:
By:
By:
By:
By:
By:
By:
By:
By:
By:
By:
By:
S-2
Exhibit 23.1
2021 Bunge Annual Report
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement Nos. 333-238628, 333-159918, 333-143529,
333-130651, 333-125426, 333-66594, 333-75762, 333-76938, 333-109446, 333-211908, and 333-218273 on Form S-8 and
Registration Statement Nos. 333-231083, 333-207870, 333-211218, 333-172608, 333-165000, and 333-138662 on Form S-3 of
our reports dated February 24, 2022, relating to the financial statements of Bunge Limited and the effectiveness of Bunge
Limited’s internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended December
31, 2021.
/s/ Deloitte & Touche LLP
St. Louis, Missouri
February 24, 2022
2021 Bunge Annual Report
Exhibit 31.1
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
I, Gregory A. Heckman, certify that:
1.
I have reviewed this report on Form 10-K of Bunge Limited (the “registrant”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in
all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.
b.
c.
d.
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;
designed such internal control over financial reporting, or caused such internal control over financial reporting to
be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during
the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
a.
b.
all significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting.
Date: February 24, 2022
/s/ GREGORY A. HECKMAN
Gregory A. Heckman
Chief Executive Officer (Principal Executive Officer)
Exhibit 31.2
I, John W. Neppl, certify that:
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
2021 Bunge Annual Report
1.
I have reviewed this report on Form 10-K of Bunge Limited (the “registrant”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in
all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.
b.
c.
d.
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;
designed such internal control over financial reporting, or caused such internal control over financial reporting to
be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during
the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
a.
b.
all significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting.
Date: February 24, 2022
/s/ JOHN W. NEPPL
John W. Neppl
Executive Vice President, Chief Financial Officer
2021 Bunge Annual Report
Exhibit 32.1
Certification by the Chief Executive Officer
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes Oxley Act Of 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, the
undersigned officer of Bunge Limited, a Bermuda limited liability company (the “Company”), does hereby certify that, to the
best of such officer’s knowledge:
(1) The accompanying Report of the Company on Form 10-K for the year ended December 31, 2021 (the “Report”) fully
complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
February 24, 2022
/s/ GREGORY A. HECKMAN
Gregory A. Heckman
Chief Executive Officer (Principal Executive Officer)
A signed original of this written statement required by Section 906 has been provided to Bunge Limited and will be
retained by Bunge Limited and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
2021 Bunge Annual Report
Certification by the Chief Financial Officer
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes Oxley Act Of 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, the
undersigned officer of Bunge Limited, a Bermuda limited liability company (the “Company”), does hereby certify that, to the
best of such officer’s knowledge:
(1) The accompanying Report of the Company on Form 10-K for the year ended December 31, 2021 (the “Report”) fully
complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
February 24, 2022
/s/ JOHN W. NEPPL
John W. Neppl
Executive Vice President, Chief Financial Officer
A signed original of this written statement required by Section 906 has been provided to Bunge Limited and will be
retained by Bunge Limited and furnished to the Securities and Exchange Commission or its staff upon request.
A L E T T E R F R O M G R E G O R Y H E C K M A N , B U N G E C E O
Dear Shareholders,
Shareholder Information
In 2021, the Bunge team did what it does best – deliver essential
other stakeholders to promote change at scale across the entire
food, feed and fuel while continuously improving our business so
supply chain.
that we can better serve our customers at both ends of the value
chain. As a result of our team’s hard work, Bunge delivered a record
performance, but the results did not come easily.
From this solid foundation, we look to the future with tremendous
optimism. We see additional growth opportunity in our core
oilseed processing and origination business with continued
Weather events, particularly Hurricane Ida in the United States,
demand for our products, including renewable feedstocks. Our
disrupted supply chains as did the ongoing pandemic with its waves
announced joint venture with Chevron is a significant step forward
of new variants. Our team continued to put
safety first so that we were able to operate
with only a few localized interruptions.
Our team’s ability to successfully adapt to
changing and often challenging market
conditions is a credit to both their commitment
and the changes we have made to the business.
Creating end-to-end value chains has improved
the sharing of information, provided greater
accountability and driven efficiency. The way
we are using data is allowing us to make better
risk, commercial and capital management
decisions and capture market opportunities.
In the past year,
the team
set records
in total
crush volume,
refining performance
and port volumes.
in building the capability to make changes at
scale to help reduce carbon in our own and our
customers’ value chains.
We also see great potential in our growing
specialty fats and oils and plant-based proteins.
With our existing broad portfolio of oils and our
recent investments in plant-protein ingredients,
we are already serving some of the leading
companies in this category. We will continue to
invest, building on our global platform,
leadership in oilseeds, and culture of innovation,
to benefit from this expanding market.
The completion of the portfolio optimization projects we had
identified has improved our global platform and strengthened our
financial position.
While we enter 2022 with confidence, we also recognize the crisis
unfolding in Ukraine will create disruption and uncertainty for
global food supply chains. The essential work Bunge does in
connecting farmers to consumers, managing risks and using our
We believe this transformation is creating tangible improvements
global network to get food from where it is grown to where it is
in our performance with both our Agribusiness value chains and
needed will be more important than ever.
our Refined and Specialty Oils teams posting outstanding results.
In the past year, the team set records in total crush volume, refining
performance and port volumes. In addition, we had over a 100
CapEx projects greater than $1 million each in 2021, delivering
them safely with 95% of them on budget and on time.
These accomplishments were done the right way. The team
improved our safety performance in key categories with a 25%
reduction in our most severe injuries. We are also continuing to
focus on fighting climate change. In 2021, we announced Science-
Based Targets (SBTs) to achieve absolute reduction in carbon
emissions for our own operations and in our supply chains. Our
industry leading commitment to have deforestation-free supply
chains in 2025 is a big part of our path to the achievement of our
Scope 3 target. We closed on the refinancing of a credit facility
tied to sustainability targets. And, we are actively engaging with
I am honored to lead such an outstanding team and am proud of
what we have accomplished in 2021. Working together, we will
continue to deliver results for our customers, shareholders and
each other. And we will do so with a team who is passionate, bold
Thank you for your continued support.
and driven.
Sincerely,
Gregory Heckman
Chief Executive Officer
Corporate Office
Bunge Limited
1391 Timberlake Manor Parkway
St. Louis, Missouri 63017
U.S.A.
314.292.2000
Contact Information
Corporate and Investor Relations
636.292.3014
Board of Directors
Kathleen Hyle, Chair
Sheila Bair, Deputy Chair
Carol Browner
Paul Fribourg
J. Erik Fyrwald
Gregory Heckman
Bernardo Hees
Michael Korobi
Kenneth Simril
Henry “Jay” Winship
Mark Zenuk
Executive Leadership Team
Gregory Heckman
Deborah Borg
Aaron Buettner
Robert Coviello
Christos Dimopoulos
Julio Garros
Pierre Mauger
John Neppl
Joseph Podwika
Robert Wagner
Transfer Agent and Registrar
Computershare, Inc.
P.O. Box 50500
Louisville, KY 40233-5000
U.S.A.
U.S. Shareholders Toll-Free
800.851.9677
Shareholders Outside the U.S.
201.680.6578
TDD for Hearing-Impaired U.S. Shareholders
800.952.9245
TDD for Hearing-Impaired Shareholders Outside the U.S.
201.680.6610
If you are a registered shareowner, you can access your Bunge
account online by going to www.computershare.com/investor.
Additional Shareowner Information
Bunge’s annual report, filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and other SEC filings are
available to you on our website at www.bunge.com or you can
receive them via email by choosing to “Register for Email Alerts” on
the Investors page at www.bunge.com.
Stock Listing
New York Stock Exchange
Annual Meeting
Bunge’s Annual General Meeting of Shareholders will be held via
webcast at 11 a.m., Central Time, on May 12, 2022. See the proxy
statement for additional information.
Independent Auditors
Deloitte & Touche LLP
2021
Annual Report
1391 Timberlake Manor Parkway | St. Louis, Missouri 63017
314.292.2000 | bunge.com