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1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANG
2、E ACT OF 1934For the transition period from to Commission File Number 001-16625BUNGE LIMITED(Exact name of registrant as specified in its charter)Bermuda98-0231912(State or other jurisdiction of incorporation ororganization)(I.R.S.Employer Identification No.)1391 Timberlake Manor ParkwayChesterfield
3、Missouri63017(Address of principal executive offices)(Zip Code)(314)292-2000(Registrants 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 registeredCommon Shares,$0.01 par value per shar
4、e BG New York Stock ExchangeIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding12 months(or for such shorter period that the registrant was required to file such reports),and(2)ha
5、s been subject to such filing requirements for the past 90 days.Yes No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for
6、 such shorter period that the registrant was required to submit such files).Yes No oIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company or an emerging growthcompany.See the definitions of“large accelerate
7、d filer,”“accelerated filer”,“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reportingcompanyEmerging growthcompanyIf an emerging growth company,indicate by check mark if the registrant has
8、elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act.Yes No As of April
9、 28,2023,the number of common shares outstanding of the registrant was:Common shares,par value$.01 per share:150,596,246Table of ContentsBUNGE LIMITEDTABLE OF CONTENTS PagePART I FINANCIAL INFORMATION Item 1.Financial Statements(Unaudited)Condensed Consolidated Statements of Income(Loss)for the Thre
10、e Months Ended March 31,2023 and 20223 Condensed Consolidated Statements of Comprehensive Income(Loss)for the Three Months Ended March 31,2023 and 20224 Condensed Consolidated Balance Sheets as of March 31,2023 and December 31,20225 Condensed Consolidated Statements of Cash Flows for the Three Month
11、s Ended March 31,2023 and 20226 Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests for the Three Months EndedMarch 31,2023 and 20227 Notes to the Condensed Consolidated Financial Statements8 Cautionary Statement Regarding Forward Looking Statements33 Item
12、2.Managements Discussion and Analysis of Financial Condition and Results of Operations34 Item 3.Quantitative and Qualitative Disclosures About Market Risk47 Item 4.Controls and Procedures50 PART II INFORMATION Item 1.Legal Proceedings51 Item 1A.Risk Factors51 Item 2.Unregistered Sales of Equity Secu
13、rities and Use of Proceeds52 Item 3.Defaults Upon Senior Securities52 Item 4.Mine Safety Disclosures52 Item 5.Other Information52 Item 6.Exhibits52 Exhibit Index53Signatures542Table of ContentsPART I FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSBUNGE LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED
14、 STATEMENTS OF INCOME(LOSS)(Unaudited)(U.S.dollars in millions,except per share data)Three Months EndedMarch 31,20232022Net sales$15,328$15,880 Cost of goods sold(14,147)(14,676)Gross profit1,181 1,204 Selling,general and administrative expenses(353)(308)Interest income43 9 Interest expense(112)(111
15、)Foreign exchange(losses)gains49 12 Other income(expense)net15(47)Income(loss)from affiliates19 45 Income(loss)before income tax842 804 Income tax(expense)benefit(183)(108)Net income(loss)659 696 Net(income)loss attributable to noncontrolling interests and redeemable noncontrolling interests(27)(8)N
16、et income(loss)attributable to Bunge$632$688 Earnings per common sharebasic(Note 18)Net income(loss)attributable to Bunge common shareholders-basic$4.21$4.83 Earnings per common sharediluted(Note 18)Net income(loss)attributable to Bunge common shareholders-diluted$4.15$4.48 The accompanying notes ar
17、e an integral part of these condensed consolidated financial statements.3Table of ContentsBUNGE LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS)(Unaudited)(U.S.dollars in millions)Three Months EndedMarch 31,20232022Net income(loss)$659$696 Other comprehensive i
18、ncome(loss):Foreign exchange translation adjustment125 389 Unrealized gains(losses)on designated hedges,net of tax(expense)benefit of$(1)in 2023 and$(2)in 2022(26)(117)Reclassification of net(gains)losses to net income,net of tax expense(benefit)of zero in 2023 and$11 in 2022104(29)Total other compr
19、ehensive income(loss)203 243 Total comprehensive income(loss)862 939 Comprehensive(income)loss attributable to noncontrolling interests and redeemable noncontrolling interests(30)7 Total comprehensive income(loss)attributable to Bunge$832$946 The accompanying notes are an integral part of these cond
20、ensed consolidated financial statements.4Table of ContentsBUNGE LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(U.S.dollars in millions,except share data)March 31,2023December 31,2022ASSETS Current assets:Cash and cash equivalents$3,052$1,104 Trade accounts receivable(less a
21、llowances of$89 and$90)(Note 4)2,789 2,829 Inventories(Note 5)8,952 8,408 Assets held for sale(Note 2)36 Other current assets(Note 6)4,247 4,381 Total current assets19,040 16,758 Property,plant and equipment,net3,731 3,617 Operating lease assets953 1,024 Goodwill478 470 Other intangible assets,net35
22、6 360 Investments in affiliates1,129 1,012 Deferred income taxes724 712 Other non-current assets(Note 7)699 627 Total assets$27,110$24,580 LIABILITIES AND EQUITY Current liabilities:Short-term debt(Note 13)$540$546 Current portion of long-term debt(Note 13)868 846 Trade accounts payable(includes$1,0
23、06 and$643 carried at fair value)(Note 11)5,476 4,386 Current operating lease obligations408 425 Liabilities held for sale(Note 2)18 Other current liabilities(Note 10)3,116 3,379 Total current liabilities10,408 9,600 Long-term debt(Note 13)4,312 3,259 Deferred income taxes375 365 Non-current operati
24、ng lease obligations490 547 Other non-current liabilities(Note 16)802 849 Redeemable noncontrolling interest4 4 Equity(Note 17):Common shares,par value$.01;authorized 400,000,000 shares;issued and outstanding:2023 150,585,513 shares,2022 149,907,932 shares1 1 Additional paid-in capital6,688 6,692 Re
25、tained earnings10,757 10,222 Accumulated other comprehensive income(loss)(Note 17)(6,171)(6,371)Treasury shares,at cost;2023 and 2022-18,835,812 shares(1,320)(1,320)Total Bunge shareholders equity9,955 9,224 Noncontrolling interests764 732 Total equity10,719 9,956 Total liabilities,redeemable noncon
26、trolling interest and equity$27,110$24,580 The accompanying notes are an integral part of these condensed consolidated financial statements.5Table of ContentsBUNGE LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(U.S.dollars in millions)Three Months EndedMarch 31,20
27、232022OPERATING ACTIVITIES Net income(loss)$659$696 Adjustments to reconcile net income(loss)to cash provided by(used for)operating activities:Foreign exchange(gain)loss on net debt(50)(116)Bad debt expense(1)5 Depreciation,depletion and amortization102 102 Share-based compensation expense17 16 Defe
28、rred income tax expense(benefit)11(54)(Gain)loss on sale of investments and property,plant and equipment(3)(1)Other,net(5)2 Changes in operating assets and liabilities,excluding the effects of acquisitions and dispositions:Trade accounts receivable5(392)Inventories(434)(2,350)Secured advances to sup
29、pliers15(52)Trade accounts payable and accrued liabilities802 1,167 Advances on sales(119)(30)Net unrealized(gains)losses on derivative contracts(424)213 Margin deposits141(388)Recoverable and income taxes,net128(11)Marketable securities13 243 Beneficial interest in securitized trade receivables(1,6
30、37)Other,net74(69)Cash provided by(used for)operating activities931(2,656)INVESTING ACTIVITIES Payments made for capital expenditures(173)(106)Proceeds from investments1 18 Payments for investments(4)(54)Settlements of net investment hedges(1)Proceeds from beneficial interest in securitized trade re
31、ceivables61 1,613 Proceeds from disposals of businesses and property,plant and equipment159 Payments for investments in affiliates(94)Other,net95(22)Cash provided by(used for)investing activities45 1,448 FINANCING ACTIVITIES Net change in short-term debt with maturities of three months or less7 990
32、Proceeds from short-term debt with maturities greater than three months154 491 Repayments of short-term debt with maturities greater than three months(158)(180)Proceeds from long-term debt1,000 30 Repayments of long-term debt(1)(601)Proceeds from the exercise of options for common shares3 32 Dividen
33、ds paid to common and preference shareholders(94)(82)Other,net(10)28 Cash provided by(used for)financing activities901 708 Effect of exchange rate changes on cash and cash equivalents,restricted cash,and cash held for sale28 1 Net increase(decrease)in cash and cash equivalents,restricted cash,and ca
34、sh held for sale1,905(499)Cash and cash equivalents,restricted cash,and cash held for sale-beginning of period1,152 905 Cash and cash equivalents,restricted cash,and cash held for sale-end of period$3,057$406 The accompanying notes are an integral part of these condensed consolidated financial state
35、ments.6Table of ContentsBUNGE LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS(Unaudited)(U.S.dollars in millions,except share data)ConvertiblePreference SharesCommon SharesRedeemableNon-ControllingInterestsSharesAmountSharesAmoun
36、tAdditionalPaid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome(Loss)TreasurySharesNon-ControllingInterestsTotalEquityBalance,January 1,2023$4$149,907,932$1$6,692$10,222$(6,371)$(1,320)$732$9,956 Net income(loss)632 27 659 Other comprehensive income(loss)200 3 203 Dividends on common sh
37、ares,$0.625 per share (94)(94)Capital contribution(return)from(to)noncontrollinginterest 2 2 Share-based compensation expense 17 17 Issuance of common shares,including stock dividends 677,581 (21)(3)(24)Balance,March 31,2023$4$150,585,513$1$6,688$10,757$(6,171)$(1,320)$764$10,719 ConvertiblePreferen
38、ce SharesCommon Shares RedeemableNon-ControllingInterestsSharesAmountSharesAmountAdditionalPaid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome(Loss)TreasurySharesNon-ControllingInterestsTotalEquityBalance,January 1,2022$381 6,899,683$690 141,057,414$1$5,590$8,979$(6,471)$(1,120)$156$7,
39、825 Net income(loss)4 688 4 692 Other comprehensive income(loss)(15)258 258 Dividends on common shares,$0.525 per share (81)(81)Share-based compensation expense 16 16 Conversion of preference shares to common shares(6,899,683)(690)8,863,331 690 Issuance of common shares,including stock dividends 1,7
40、32,324 36(5)31 Balance,March 31,2022$370$151,653,069$1$6,332$9,581$(6,213)$(1,120)$160$8,741 The accompanying notes are an integral part of these condensed consolidated financial statements.7Table of ContentsBUNGE LIMITED AND SUBSIDIARIESNOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaud
41、ited)1.BASIS OF PRESENTATION,PRINCIPLES OF CONSOLIDATION,AND SIGNIFICANT ACCOUNTING POLICIESThe accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited(Bunge or the Company),itssubsidiaries and variable interest entities(VIEs)in which Bunge is conside
42、red to be the primary beneficiary,and as a result,include the assets,liabilities,revenues and expenses of all entities over which Bunge has a controlling financial interest.The financial statements have been prepared in accordance withaccounting principles generally accepted in the United States of
43、America(U.S.GAAP)for interim financial information and the instructions to Form 10-Q andArticle 10 of Regulation S-X under the Securities Exchange Act of 1934,as amended(Exchange Act).Certain information and footnote disclosures normallyincluded in annual financial statements prepared in accordance
44、with U.S.GAAP have been condensed or omitted pursuant to Securities and Exchange Commission(SEC)rules.In the opinion of management,all adjustments(consisting of normal recurring adjustments)necessary for a fair presentation have been included.Thecondensed consolidated balance sheet at December 31,20
45、22 has been derived from Bunges audited consolidated financial statements at that date.Operating resultsfor the three months ended March 31,2023 are not necessarily indicative of the results to be expected for the year ending December 31,2023.The financialstatements should be read in conjunction wit
46、h the audited consolidated financial statements and notes thereto for the year ended December 31,2022,forming partof Bunges 2022 Annual Report on Form 10-K filed with the SEC on February 24,2023.Effective January 1,2023,the Company changed its reporting of cash proceeds from and repayments of short-
47、term debt with maturities of three months orless to be presented on a net basis in its condensed consolidated statements of cash flows.Prior to January 1,2023,the Company presented cash proceeds from andrepayments of short-term debt with maturities of three months or less separately in its consolida
48、ted statements of cash flows.Prior period amounts have beenreclassified to conform to current presentation.Ukraine-Russia WarOn February 24,2022,Russia initiated a military invasion of Ukraine(the war).Bunges Ukrainian operations comprise two oilseed crushing facilities,located in Mykolaiv and Dnipr
49、opetrovsk,a grain export terminal in Mykolaiv commercial seaport,numerous grain elevators,and an office in Kiev.The Companyalso operates a corn milling facility in Ukraine via a joint venture.As of March 31,2023,total assets and total liabilities associated with Bunges Ukrainiansubsidiaries each com
50、prise approximately 2%of Bunges consolidated Total assets and Total liabilities,respectively.Bunges operational activities in Ukraine have steadily increased during recent months,but remain limited and are subject to Bunges ability to performactivities safely.The scope,intensity,duration,and outcome
51、 of the ongoing war is uncertain,and any continuation or escalation of the war may have a materialadverse effect on Bunge,including its Ukrainian operations.In the three months ended March 31,2023,the Company recognized mark-to-market gains of$10 million in Cost of goods sold in the condensedconsoli
52、dated statements of income related to inventory recovered from its Mykolaiv and other facilities which had no carrying value as of December 31,2022.Noimpairments or charges related to the war were recorded in the three months ended March 31,2023.Please refer to Note 2-Ukraine-Russia War,included in
53、theCompanys 2022 Annual Report on Form 10-K for further details regarding the impact of the war on Bunges financial statements.Cash,Cash Equivalents and Restricted Cash Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts
54、 shown on the condensedconsolidated statements of cash flows.The following table provides a reconciliation of cash and cash equivalents and restricted cash,reported within the condensedconsolidated balance sheets,which sum to the total of the same such amounts shown in the condensed consolidated sta
55、tements of cash flows.(US$in millions)March 31,2023March 31,2022Cash and cash equivalents$3,052$386 Restricted cash included in Other current assets5 20 Total$3,057$406 8Table of ContentsCash paid for income taxes,net of refunds received,was$39 million and$103 million for the three months ended Marc
56、h 31,2023 and 2022,respectively.Cash paid for interest expense was$94 million and$122 million for the three months ended March 31,2023 and 2022,respectively.Recently Adopted Accounting Pronouncements In March 2020,the FASB issued Accounting Standards Update(ASU)2020-04,Reference Rate Reform(Topic 84
57、8),to provide temporary optionalexpedients and exceptions to the U.S.GAAP guidance on contract modifications and hedge accounting designed to ease the financial reporting burden related toreference rate reform.In December 2022,the FASB subsequently issued ASU 2022-06,Deferral of the Sunset Date of T
58、opic 848,to ensure the relief in Topic 848covers the period of time during which a significant number of modifications to eligible contracts and hedging relationships may take place.The ASU defers thesunset date of Topic 848 from December 31,2022 to December 31,2024,after which entities will no long
59、er be permitted to apply the relief in Topic 848.TheCompany is applying this guidance prospectively to all eligible contract modifications through December 31,2024.As of March 31,2023,the adoption of thisguidance has not had,and is not expected to have,a material impact on Bunges condensed consolida
60、ted financial statements.9Table of Contents2.ACQUISITIONS AND DISPOSITIONSAcquisitionsOn April 14,2023,Bunge,through its 80%ownership of Bunge Loders Croklaan joint venture with IOI Corporation Berhad,completed its purchase ofFuji Oils New Orleans,LLCs port-based refinery.The refinery is located in
61、International-Matex Tank Terminals Avondale Terminal,in Avondale,Louisiana in theUnited States.Cash consideration for the purchase included approximately$178 million,plus an additional de minimis sum for the value of net working capitalacquired on the date of closing.DispositionsRussian Oilseed Proc
62、essing and Refining Operations DispositionOn September 16,2022,Bunge signed an agreement to sell its remaining Russian operations,primarily comprising an oilseed crushing and refiningfacility in Voronezh,southwest Russia(referred to as the disposal group),to Karen Vanetsyan(the Buyer),in exchange fo
63、r a cash price approximately equal tothe book value of the disposal groups net assets.On January 9,2023,Bunge and the Buyer agreed to a purchase price adjustment.The purchase price adjustmentand cumulative translation adjustment losses,among other items related to the disposal group,resulted in a co
64、rresponding impairment loss on sale of$103 million,recognized in Cost of goods sold for the year ended December 31,2022.On February 3,2023,the transaction closed in accordance with the terms of the agreementwith no material impact to the condensed consolidated statement of income for the three month
65、s ended March 31,2023.In connection with the transaction,Bunge agreed to indemnify the Buyer against certain legal claims involving Bunges Russian subsidiary.Managementhas assessed the likelihood of any loss related to claims covered by the indemnity as remote,and recognized a liability in accordanc
66、e with Accounting StandardsCodification(ASC)460,Guarantees.See Note 15-Commitments and Contingencies for more information.The following table presents the book values of the major classes of assets and liabilities that were included in the disposal group at the closing date.Intercompany balances bet
67、ween the disposal group and other Bunge consolidated entities have been omitted.Assets included in the disposal group comprised$12 million and$21 million,reported under the Agribusiness segment and Refined and Specialty Oils segment,respectively.Liabilities included in the disposalgroup comprised$6
68、million and$13 million,reported under the Agribusiness segment and Refined and Specialty Oils segment,respectively.(US$in millions)Cash and cash equivalents$19 Trade accounts receivable(less allowances of zero)15 Inventories33 Other current assets14 Property,plant and equipment,net24 Goodwill&Other
69、intangible assets,net10 Other non-current assets8 Impairment reserve(90)Total assets$33 Trade accounts payable and accrued liabilities$3 Other current liabilities16 Total liabilities$19 10Table of Contents3.TRADE STRUCTURED FINANCE PROGRAMThe Company engages in various trade structured finance activ
70、ities to leverage the value of its global trade flows.These activities include programs underwhich the Company generally obtains U.S.dollar-denominated letters of credit(LCs)from financial institutions,each based on an underlying commodity tradeflow,and time deposits denominated in either the local
71、currency of the financial institutions counterparties or in U.S.dollars,as well as foreign exchange forwardcontracts,in which trade related payables are set-off against receivables,all of which are subject to legally enforceable set-off agreements.As of March 31,2023 and December 31,2022,time deposi
72、ts and LCs of$5,585 million and$5,901 million,respectively,were presented net on thecondensed consolidated balance sheets as the criteria of ASC 210-20,Offsetting,had been met.The net losses and gains related to such activities are included as anadjustment to Cost of goods sold in the accompanying c
73、ondensed consolidated statements of income.At March 31,2023 and December 31,2022,time deposits,including those presented on a net basis,carried weighted-average interest rates of 4.58%and 3.46%,respectively.During the three months ended March 31,2023and 2022,total net proceeds from issuances of LCs
74、were$1,381 million and$1,609 million,respectively.These cash inflows were offset by the related cashoutflows resulting from placement of the time deposits and repayment of the LCs.All cash flows related to the programs are included in operating activities in thecondensed consolidated statements of c
75、ash flows.As part of the trade structured finance activities,LCs may be sold to financial institutions on a discounted basis.Bunge does not service derecognized LCs.The terms of the sale may require the Company to continue to make periodic interest payments to financial institutions based on changes
76、 in the Secured OvernightFinancing Rate(SOFR)for a period of up to 365 days.Bunges payment obligation to financial institutions as part of the trade structured finance activities,reported in Other current liabilities,including any unrealized gain or loss on changes in SOFR is not significant as of M
77、arch 31,2023 or December 31,2022.Thenotional amounts of LCs subject to continuing variable interest payments that have been derecognized from the Companys condensed consolidated balance sheetsas of March 31,2023 and December 31,2022 are included in Note 12-Derivative Instruments And Hedging Activiti
78、es.The net gain or loss included in Cost ofgoods sold resulting from the fair valuation of such variable interest rate obligations is not significant for the three month periods ended March 31,2023 and 2022.4.TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAMTrade Accounts Receiv
79、ableChanges to the allowance for lifetime expected credit losses related to trade accounts receivable were as follows:Three Months Ended March 31,2023Rollforward of the Allowance for Credit Losses(US$in millions)Short-termLong-term TotalAllowance as of January 1,2023$90$46$136 Current period provisi
80、ons15 15 Recoveries(17)(17)Write-offs charged against the allowance(12)(12)Foreign exchange translation differences1 1 Allowance as of March 31,2023$89$34$123(1)Long-term portion of the allowance for credit losses included in Other non-current assets.(1)11Table of ContentsThree Months Ended March 31
81、,2022Rollforward of the Allowance for Credit Losses(US$in millions)Short-termLong-term TotalAllowance as of January 1,2022$85$47$132 Current period provisions15 15 Recoveries(9)(9)Write-offs charged against the allowance(10)(2)(12)Foreign exchange translation differences3 4 7 Allowance as of March 3
82、1,2022$84$49$133(1)Long-term portion of the allowance for credit losses included in Other non-current assets.Trade Receivables Securitization ProgramBunge and certain of its subsidiaries participate in a trade receivables securitization program(the Program)with a financial institution,as administrat
83、iveagent,and certain commercial paper conduit purchasers and committed purchasers(collectively,the Purchasers).Koninklijke Bunge B.V.,a wholly ownedsubsidiary of Bunge,acts as master servicer,responsible for servicing and collecting the accounts receivable for the Program.The Program is designed to
84、enhanceBunges financial flexibility by providing an additional source of liquidity for its operations.Bunge may also,from time to time with the consent of the administrative agent,request one or more of the existing committed purchasers or newcommitted purchasers to increase the total commitments by
85、 an amount not to exceed$250 million pursuant to an accordion provision.The Program includessustainability provisions,pursuant to which the applicable margin will be increased or decreased based on Bunges performance relative to certain sustainabilitytargets,including,but not limited to,science-base
86、d targets that define Bunges climate goals within its operations and a commitment to a deforestation-free supplychain in 2025.On November 16,2022,Bunge and certain of its subsidiaries amended the Program from a deferred purchase price structure to a pledge structure.Underthe new structure,Bunge Secu
87、ritization B.V.(BSBV),a consolidated bankruptcy remote special purpose entity,transfers certain trade receivables to thePurchasers in exchange for a cash payment up to$1.1 billion and retains ownership of a population of unsold receivables.BSBV agrees to guaranty the collectionof sold receivables an
88、d grants a lien to the administrative agent on all unsold receivables.Collections on unsold receivables and guarantee payments are classifiedas operating activities in Bunges condensed consolidated statements of cash flows.At November 16,2022,the effective date of the amended Program,$741 million of
89、 sold receivables were repurchased through a non-cash investingexchange of the Deferred Purchase Price(DPP).As of March 31,2023,the Company had collected a total of$707 million of repurchased receivables,including$61 million collected in the first quarter of 2023,which are reported as Proceeds from
90、beneficial interest in securitized trade receivables under investing activities inthe consolidated statements of cash flows.The Program will terminate on May 17,2031;however,each committed purchasers commitment to purchase trade receivables under the Program willterminate on May 17,2025,unless exten
91、ded for an additional period in accordance with the terms of the receivables transfer agreement.(US$in millions)March 31,2023December 31,2022Receivables sold that were derecognized from Bunges balance sheet$1,100$1,100 Unsold receivables pledged to the administrative agent and included in Trade acco
92、unts receivable$645$583 Bunges risk of loss following the sale of trade receivables is substantially the same as the previous DPP structure and limited to the assets of BSBV,primarily comprised of unsold receivables pledged to the administrative agent.(1)12Table of Contents The table below summarize
93、s the cash flows and discounts of Bunges trade receivables associated with the Program.Servicing fees under the Program were notsignificant in any period.Three Months EndedMarch 31,(US$in millions)20232022Gross receivables sold$3,635$4,080 Proceeds received in cash related to transfers of receivable
94、s(1)$3,594$3,511 Cash collections from customers on receivables previously sold$3,635$4,007 Discounts related to gross receivables sold included in SG&A$13$2(1)Prior to November 16,2022,the Company recognized these proceeds net of the DPP,consisting of a receivable from the Purchasers that entitled
95、theCompany to certain collections on the receivable.The Company recognized the collection of the DPP in net cash provided by investing activities in thecondensed consolidated statements of cash flows.As a result of the November 16,2022 amendment,Bunge reports collections on newly originated,unsoldre
96、ceivables held by BSBV as operating cash flows in the condensed consolidated statements of cash flows.5.INVENTORIESInventories by segment are presented below.Readily marketable inventories(RMI)are agricultural commodity inventories,such as soybeans,soybeanmeal,soybean oil,palm oil,corn,and wheat car
97、ried at fair value because of their commodity characteristics,widely available markets,and international pricingmechanisms.The Company engages in trading and distribution,or merchandising activities,and part of RMI can be attributable to such activities and is not held forprocessing.All other invent
98、ories are carried at lower of cost or net realizable value.(US$in millions)March 31,2023December 31,2022Agribusiness$7,458$6,756 Refined and Specialty Oils 1,148 1,316 Milling 341 332 Corporate and Other5 4 Total$8,952$8,408(1)Includes RMI of$6,954 million and$6,286 million at March 31,2023,and Dece
99、mber 31,2022,respectively.Assets held for sale includes RMI of zero and$26 million at March 31,2023,and December 31,2022,respectively.Of these amounts,$5,731 million and$4,789 million can be attributable tomerchandising activities at March 31,2023,and December 31,2022,respectively.(2)Includes RMI of
100、$227 million and$271 million at March 31,2023,and December 31,2022,respectively.(3)Includes RMI of$50 million and$97 million at March 31,2023,and December 31,2022,respectively.(1)(2)(3)13Table of Contents6.OTHER CURRENT ASSETSOther current assets consist of the following:(US$in millions)March 31,202
101、3December 31,2022Unrealized gains on derivative contracts,at fair value$1,924$1,597 Prepaid commodity purchase contracts 288 254 Secured advances to suppliers,net 330 365 Recoverable taxes,net361 365 Margin deposits653 791 Marketable securities and other short-term investments 97 119 Income taxes re
102、ceivable28 102 Prepaid expenses289 376 Restricted cash5 26 Other272 386 Total$4,247$4,381(1)Prepaid commodity purchase contracts represent advance payments against contracts for future deliveries of specified quantities of agriculturalcommodities.(2)The Company provides cash advances to suppliers,pr
103、imarily Brazilian soybean farmers,to finance a portion of the suppliers production costs.TheCompany does not bear any of the costs or operational risks associated with the related growing activities.The advances are largely collateralized by futurecrops and physical assets of the suppliers,carry a l
104、ocal market interest rate,and settle when the farmers crops are harvested and sold.The securedadvances to farmers are reported net of allowances of$8 million and$7 million at March 31,2023 and December 31,2022,respectively.(-)Interest earned on secured advances to suppliers of$7 million and$6 millio
105、n for the three months ended March 31,2023,and 2022,respectively,isincluded in Net sales in the condensed consolidated statements of income.(3)Marketable securities and other short-term investments-The Company invests in foreign government securities,corporate debt securities,deposits,equitysecuriti
106、es,and other securities.The following is a summary of amounts recorded in the Companys condensed consolidated balance sheets as marketablesecurities and other short-term investments.(US$in millions)March 31,2023December 31,2022Foreign government securities$55$68 Equity securities13 23 Other29 28 Tot
107、al$97$119 As of March 31,2023,and December 31,2022,$67 million and$89 million,respectively,of marketable securities and other short-term investments wererecorded at fair value.All other investments were recorded at cost,and due to the short-term nature of these investments,their carrying valuesappro
108、ximated their fair values.For the three months ended March 31,2023,and 2022,unrealized losses of$7 million and$102 million,respectively,havebeen recognized in Other income(expense)-net for investments held at March 31,2023,and 2022.(1)(2)(3)14Table of Contents7.OTHER NON-CURRENT ASSETSOther non-curr
109、ent assets consist of the following:(US$in millions)March 31,2023December 31,2022Recoverable taxes,net$34$59 Judicial deposits116 110 Other long-term receivables,net 15 16 Income taxes receivable208 143 Long-term investments167 163 Affiliate loans receivable8 8 Long-term receivables from farmers in
110、Brazil,net 44 32 Unrealized gains on derivative contracts,at fair value1 1 Other106 95 Total$699$627(1)A significant portion of these non-current assets arise from the Companys Brazilian operations and their realization could take several years.(2)Net of allowances as described in Note 4-Trade Accou
111、nts Receivable and Trade Receivables Securitization Program.(3)As of March 31,2023,and December 31,2022,$11 million and$9 million,respectively,of long-term investments are recorded at fair value.Recoverable taxes,net-Recoverable taxes include value-added taxes paid upon the acquisition of property,p
112、lant and equipment,raw materials and taxableservices,and other transactional taxes which can be recovered in cash or as compensation against income taxes,or other taxes Bunge may owe,primarily in Braziland Europe.Recoverable taxes are reported net of allowances of$13 million and$14 million at March
113、31,2023,and December 31,2022,respectively.Judicial deposits-Judicial deposits are funds the Company has placed on deposit with the courts in Brazil.These funds are held in judicial escrow relatingto certain legal proceedings pending resolution and bear interest at the Selic rate,which is the benchma
114、rk 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 areexpected to be primarily used for the settlement of future income tax obligations.Income taxes receivable in Brazil
115、 bear interest at the Selic rate.Long-term investments-Long-term investments primarily comprise Bunges noncontrolling equity investments in growth stage agribusiness and foodcompanies held by Bunge Ventures.Affiliate loans receivable-Affiliate loans receivable are primarily interest-bearing receivab
116、les from unconsolidated affiliates with remaining maturities ofgreater than one year.Long-term receivables from farmers in Brazil,net-The Company provides financing to farmers in Brazil,primarily through secured advances againstfarmer commitments to deliver agricultural commodities(primarily soybean
117、s)upon harvest of the then-current years crop,and through credit sales of fertilizer tofarmers.Certain such long-term receivables from farmers are originally recorded in Other current assets as prepaid commodity purchase contracts or securedadvances to suppliers(see Note 6-Other Current Assets)or Ot
118、her non-current assets according to their maturity.Advances initially recorded in Other current assetsare reclassified to Other non-current assets if collection issues arise and amounts become past due with resolution of such matters expected to take more than oneyear.(1)(1)(2)(1)(3)(1)15Table of Co
119、ntentsThe average recorded investment in long-term receivables from farmers in Brazil for the three months ended March 31,2023,and the year endedDecember 31,2022,was$73 million and$90 million,respectively.The table below summarizes the Companys recorded investment in long-term receivables fromfarmer
120、s in Brazil and the related allowance amounts.March 31,2023December 31,2022(US$in millions)RecordedInvestmentAllowanceRecordedInvestmentAllowanceFor which an allowance has been provided:Legal collection process$35$35$40$34 Renegotiated amounts2 2 2 2 For which no allowance has been provided:Legal co
121、llection process24 19 Renegotiated amounts9 7 Other long-term receivables 11 Total$81$37$68$36(1)All amounts in legal collection processes are considered past due upon initiation of legal action.(2)These renegotiated amounts are current on repayment terms.(3)New advances expected to be realized thro
122、ugh farmer commitments to deliver agricultural commodities in crop periods greater than twelve months fromthe balance sheet date.Such advances are reclassified from Other non-current assets to Other current assets in later periods depending on the expected dateof their realization.The table below su
123、mmarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.Three Months EndedMarch 31,(US$in millions)20232022Allowance as of January 1$36$36 Bad debt provisions Recoveries(1)Write-offs Transfers Foreign exchange translation1 7 Allowance as o
124、f March 31$37$42 8.VARIABLE INTEREST ENTITIESConsolidated Variable Interest EntitiesOn May 1,2022,Bunge completed a transaction with Chevron Corporation(Chevron)to create a joint venture,Bunge Chevron Ag Renewables LLC(the Joint Venture),leveraging Bunges expertise in oilseed processing and farmer r
125、elationships,and Chevrons expertise in fuels manufacturing and marketing,tohelp meet the demand for renewable fuels and to develop lower carbon intensity feedstocks.The Joint Venture is a variable interest entity(VIE)in which Bunge is considered to be the primary beneficiary because it is responsibl
126、e for the day-to-day operating decisions of the Joint Venture as well as the marketing of the principal products,primarily soybean meal and oil produced and sold by the JointVenture,among other factors.The Joint Ventures assets can only be used to settle the Joint Ventures own obligations and the Jo
127、int Ventures creditors have no recourse to Bungesassets beyond Bunges maximum exposure to loss associated with the Joint Venture at any given time.The following table presents the values of the assets andliabilities associated with the Joint Venture,which are included in Bunges consolidated balance
128、sheets as of March 31,2023 and December 31,2022.All amountsexclude intercompany balances,which have been eliminated upon consolidation.(1)(1)(2)(3)16Table of ContentsFor all other VIEs in which Bunge is considered the primary beneficiary,the entities meet the definition of a business,and the VIEs as
129、sets can be usedother than for the settlement of the VIEs obligations.As such these VIEs have been excluded from the below table.(US$in millions)March 31,2023December 31,2022Current assets:Cash and cash equivalents$544$528 Trade accounts receivable1 Inventories79 85 Other current assets116 98 Total
130、current assets740 711 Property,plant and equipment,net76 65 Total assets$816$776 Current liabilities:Trade accounts payable and accrued liabilities$52$81 Other current liabilities114 85 Total current liabilities166 166 Total liabilities$166$166 For additional information on VIEs for which Bunge has
131、determined it is not the primary beneficiary,along with the Companys related maximumexposure to losses associated with such investments,please refer to Note 12-Investments in Affiliates and Variable Interest Entities,included in the Companys2022 Annual Report on Form 10-K.9.INCOME TAXESIncome tax ex
132、pense is provided on an interim basis based on managements estimate of the annual effective income tax rate and includes the tax effects ofcertain discrete items,such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur.Inadd
133、ition,results from jurisdictions projecting a loss for the year where no tax benefit can be recognized are treated discretely in the interim period in which theyoccur.The effective tax rate is highly dependent on the geographic distribution of the Companys worldwide earnings or losses and tax regula
134、tions in eachjurisdiction.Management regularly monitors the assumptions used in estimating its annual effective tax rate,including the realizability of deferred tax assets,andadjusts estimates accordingly.Volatility in earnings within a taxing jurisdiction could result in a determination that additi
135、onal valuation allowance adjustments maybe warranted.Income tax expense for the three months ended March 31,2023,and 2022 was$183 million and$108 million,respectively.The effective tax rate for thethree months ended March 31,2023,was higher than the U.S.statutory rate of 21%primarily due to jurisdic
136、tional mix of earnings.The effective tax rate for thethree months ended March 31,2022,was lower than the U.S.statutory rate of 21%primarily due to jurisdictional mix of earnings and the release of valuationallowances in Europe and Asia.As a global enterprise,the Company files income tax returns that
137、 are subject to periodic examination and challenge by federal,state,and foreign taxauthorities.In many jurisdictions,income tax examinations,including settlement negotiations or litigation,may take several years to finalize.The Company iscurrently under examination or litigation in various locations
138、 throughout the world.While it is difficult to predict the outcome or timing of resolution of anyparticular matter,management believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that is more likely than not tobe realized.17Table of Contents10.OTHER
139、 CURRENT LIABILITIESOther current liabilities consist of the following:(US$in millions)March 31,2023December 31,2022Unrealized losses on derivative contracts,at fair value$1,477$1,570 Accrued liabilities612 755 Advances on sales 485 601 Income tax payable249 156 Other293 297 Total$3,116$3,379(1)The
140、Company records advances on sales when cash payments are received in advance of the Companys performance and recognizes revenue once therelated performance obligation is completed.Advances on sales are impacted by the seasonality of Bunges business,including the timing of harvests in thenorthern and
141、 southern hemispheres,and amounts at each balance sheet date will generally be recognized in earnings within twelve months or less.11.FAIR VALUE MEASUREMENTSBunges various financial instruments include certain components of working capital such as trade accounts receivable and trade accounts payable
142、.Additionally,Bunge uses short-and long-term debt to fund operating requirements.Trade accounts receivable,trade accounts payable,and short-term debt aregenerally stated at their carrying value,which is a reasonable estimate of fair value.See Note 3-Trade Structured Finance Program for trade structu
143、red financeprogram,Note 7-Other Non-Current Assets for long-term receivables from farmers in Brazil,net and other long-term investments,and Note 13-Debt for long-term debt.Bunges financial instruments also include derivative instruments and marketable securities,which are stated at fair value.The fa
144、ir value standard describes three levels within its hierarchy that may be used to measure fair value.LevelDescriptionFinancial Instrument(Assets/Liabilities)Level 1Quoted prices(unadjusted)in active markets foridentical assets or liabilities.Exchange traded derivative contracts.Marketable securities
145、 in active markets.Level 2Observable inputs,including adjusted Level 1quotes,quoted prices for similar assets orliabilities,quoted prices in markets that are lessactive than traded exchanges and other inputsthat are observable or can be corroborated byobservable market data for substantially the ful
146、lterm of the assets or liabilities.Exchange traded derivative contracts(less liquid markets).Readily marketable inventories.Over-the-counter(OTC)commodity purchase and sales contracts.OTC derivatives whose value is determined using pricing models with inputs that are generallybased on exchange trade
147、d prices,adjusted for location specific inputs that are primarilyobservable in the market or can be derived principally from or corroborated by observablemarket data.Marketable securities in less active markets.Level 3Unobservable inputs that are supported by littleor no market activity and that are
148、 a significantcomponent of the fair value of the assets orliabilities.Assets and liabilities whose value is determined using proprietary pricing models,discountedcash flow methodologies or similar techniques.Assets and liabilities for which the determination of fair value requires significant manage
149、mentjudgment or estimation.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 inputthat is a significant component of the fair value measurement determines the placement of the entire fair value measurem
150、ent in the hierarchy.The Companysassessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets andliabilities within the fair value hierarchy levels.For a further definition of fair value and the associated
151、 fair value levels,refer to Note 16-Fair Value Measurements,included in the Companys 2022Annual Report on Form 10-K.(1)18Table of ContentsThe following table sets forth,by level,the Companys assets and liabilities that were accounted for at fair value on a recurring basis.Fair Value Measurements at
152、Reporting Date March 31,2023December 31,2022(US$in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets:Cash equivalents$255$596$851$81$81 Readily marketable inventories(Note 5)5,923 1,308 7,231 6,268 412 6,680 Trade accounts receivable 11 11 7 7 Unrealized gain on derivative contract
153、s:Interest rate 6 6 3 3 Foreign exchange1 418 419 1 378 379 Commodities188 1,047 83 1,318 136 763 101 1,000 Freight70 70 80 80 Energy99 3 102 128 2 130 Credit 10 10 5 5 Other 24 27 27 78 33 40 27 100 Total assets$637$8,041$1,418$10,096$378$7,547$540$8,465 Liabilities:Trade accounts payable$512$494$1
154、,006$513$130$643 Unrealized loss on derivative contracts:Interest rate 282 282 344 344 Foreign exchange1 400 401 1 461 462 Commodities160 704 36 900 127 731 50 908 Freight47 47 28 28 Energy113 9 122 153 6 159 Credit 1 1 Total liabilities$321$1,907$530$2,758$309$2,056$180$2,545(1)These receivables an
155、d payables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases andsales of agricultural commodity products in the normal course of business.(2)Unrealized gains on derivative contracts are generally included in Other current assets.The
156、re were$1 million and$1 million included in Other non-currentassets at March 31,2023,and December 31,2022,respectively.(3)Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets.(4)Unrealized losses on derivative contracts are gene
157、rally included in Other current liabilities.There were$275 million and$332 million included in Othernon-current liabilities at March 31,2023,and December 31,2022,respectively.Cash equivalents Cash equivalents primarily includes money market funds and commercial paper investments.Bunge analyzes how t
158、he prices arederived and determines whether the prices are liquid or less liquid tradable prices.Cash equivalents with liquid prices are valued using prices from publiclyavailable sources and classified as Level 1.Cash equivalents with less-liquid prices are valued using third-party quotes or pricin
159、g models and classified as Level 2.Readily marketable inventoriesRMI reported at fair value are valued based on commodity futures exchange quotations,broker or dealer quotations,ormarket transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where
160、the Companys inventories are located.Insuch cases,the inventory is classified within Level 2.Certain inventories may utilize significant unobservable data related to local market adjustments to determinefair value.In such cases,the inventory is classified as Level 3.If the Company used different met
161、hods or factors to determine fair values,amounts reported as unrealized gains and losses on derivative contracts andRMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ.Additionally,if market conditionschange subsequent to the re
162、porting date,amounts reported(1)(2)(3)(1)(4)19Table of Contentsin future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensedconsolidated statements of income could differ.DerivativesThe majority of exchange t
163、raded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted pricesin active markets and are classified within Level 1.The majority of the Companys exchange traded agricultural commodity futures are cash-settled on a daily basisand,therefore,are not includ
164、ed in these tables.The Companys forward commodity purchase and sales contracts are classified as derivatives along with other OTCderivative instruments,primarily relating to freight,energy,foreign exchange and interest rates,and are classified within Level 2 or Level 3 as described below.TheCompany
165、estimates fair values based on exchange quoted prices,adjusted as appropriate for differences in local markets.These differences are generally valuedusing inputs from broker or dealer quotations,or market transactions in either the listed or OTC markets.In such cases,these derivative contracts are c
166、lassifiedwithin Level 2.OTC derivative contracts include swaps,options,and structured transactions that are generally fair valued using quantitative models that require the use ofmultiple market inputs including quoted prices for similar assets or liabilities in active markets,quoted prices for iden
167、tical or similar assets or liabilities in marketswhich are not highly active,other observable inputs relevant to the asset or liability,and market inputs corroborated by correlation or other means.These valuationmodels include inputs such as interest rates,prices,and indices,to generate continuous y
168、ield or pricing curves and volatility factors.Where observable inputs areavailable 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 withless availability of pricing information and certain structur
169、ed transactions can require internally developed model inputs that might not be observable in orcorroborated by the market.Marketable securities and investmentsComprise foreign government securities,corporate debt securities,deposits,equity securities,and otherinvestments.Bunge analyzes how the pric
170、es are derived and determines whether the prices are liquid or less liquid tradable prices.Marketable securities andinvestments 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 value
171、d using third-party quotes or pricing models and classified as Level 2 or Level 3 as described below.Level 3 MeasurementsThe following relates to Level 3 measurements.An instrument may transfer into or out of Level 3 due to inputs becoming either observable orunobservable.Level 3 MeasurementsTransfe
172、rs in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher levelfor which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant inputbecame observ
173、able during the period.Bunges policy regarding the timing of transfers between levels is to record the transfers at the end of the reporting period.Level 3 Readily marketable inventories and trade accounts payableThe significant unobservable inputs resulting in Level 3 classification for RMI,physica
174、lly settled forward purchase and sales contracts,and trade accounts payable,relate to certain management estimations regarding costs of transportation andother local market or location-related adjustments,primarily freight related adjustments in the interior of Brazil and the lack of market corrobor
175、ated information inCanada.In both situations,the Company uses proprietary information such as purchase and sales contracts and contracted prices to value freight,premiums anddiscounts in its contracts.Movements in the prices of these unobservable inputs alone would not have a material effect on the
176、Companys financial statements asthese contracts do not typically exceed one future crop cycle.Level 3 DerivativesLevel 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements.Theseinputs include commodity prices,price volatility,interest rat
177、es,volumes,and locations.Level 3 Othersprimarily relates to marketable securities and investments valued using third-party quotes or pricing models with inputs based on similarsecurities adjusted to reflect managements best estimate of the specific characteristics of the securities held by the Compa
178、ny.Such inputs represent a significantcomponent of the fair value of the securities held by the Company,resulting in the securities being classified as Level 3.The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservab
179、le inputs(Level 3)during the three months ended March 31,2023,and 2022.These instruments were valued using pricing models that management believes reflect the assumptionsthat would be used by a marketplace participant.20Table of ContentsThree Months Ended March 31,2023(US$in millions)ReadilyMarketab
180、leInventoriesDerivatives,NetTradeAccountsPayableOtherTotalBalance,January 1,2023$412$51$(130)$27$360 Total gains and losses(realized/unrealized)includedin cost of goods sold 173(15)9 167 Purchases1,644 (340)1,304 Sales(1,743)(1,743)Issuances Settlements 40 40 Transfers into Level 3838 3(71)770 Trans
181、fers out of Level 3(21)8 (13)Translation adjustment5 (2)3 Balance,March 31,2023$1,308$47$(494)$27$888(1)Readily marketable inventories,derivatives,net,and trade accounts payable,include gains/(losses)of$215 million,$(6)million and$9 million,respectively,that are attributable to the change in unreali
182、zed gains/(losses)relating to Level 3 assets and liabilities still held at March 31,2023.(2)Comprises the fair values of marketable securities and investments in Other current assets.Included within Other income(expense)-net of the condensedconsolidated statements of income are zero mark-to-market g
183、ains/(losses)related to securities still held at March 31,2023.Three Months Ended March 31,2022(US$in millions)ReadilyMarketableInventoriesDerivatives,NetTradeAccounts PayableOther TotalBalance,January 1,2022$205$(31)$(23)$151 Total gains and losses(realized/unrealized)includedin cost of goods sold
184、135 36 15 186 Total gains and losses(realized/unrealized)includedin Other income(expense)-net (64)(64)Purchases1,246 (366)880 Sales(1,377)(1,377)Issuances Settlements 273(84)189 Transfers into Level 3964 22(345)218 859 Transfers out of Level 3(47)1 (46)Translation adjustment5(1)(1)3 Balance,March 31
185、,2022$1,131$27$(447)$70$781(1)Readily marketable inventories,derivatives,net,and trade accounts payable,includes gains/(losses)of$83 million,$52 million and$15 million,respectively,that are attributable to the change in unrealized gains/(losses)relating to Level 3 assets and liabilities still held a
186、t March 31,2022.(2)Comprises the fair values of marketable securities and investments in Other current assets.Included within Other income(expense)-net of theconsolidated statements of income are$32 million in gains/(losses)related to securities still held at March 31,2022.(2)(1)(2)(1)21Table of Con
187、tents12.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESThe Company uses derivative instruments to manage several market risks,such as interest rate,foreign currency,and commodity risk.Some of thosehedges the Company enters into qualify for hedge accounting in the financial statements(Hedge Accounting
188、Derivatives)and some,while intended as economichedges,do not qualify or are not designated for hedge accounting(Economic Hedge Derivatives).As these derivatives impact the financial statements in differentways,they are discussed separately below.Hedge Accounting Derivatives-The Company uses derivati
189、ves in qualifying hedge accounting relationships to manage certain of its interest rate,foreigncurrency,and commodity risks.In executing these hedge strategies,the Company primarily relies on the shortcut and critical terms match methods in designing itshedge accounting strategy,which results in lit
190、tle to no net earnings impact for these hedge relationships.The Company monitors these relationships on a quarterlybasis 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
191、-These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt.Under fairvalue 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 exposurebei
192、ng hedged,with both adjustments offset to earnings.In other words,the earnings effect of a change in the fair value of the derivative will be substantially offsetby the earnings effect of the change in the carrying value of the hedged debt.The net impact of fair value hedge accounting for interest r
193、ate swaps is recognized inInterest expense.For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains(losses),and the changes ininterest rate risk are recognized in Interest expense.Changes in basis risk are held in Accumulated other comprehensiv
194、e income(loss)until realized through thecoupon.Cash flow hedges of currency risk-The Company manages currency risk on certain forecasted sales,purchases,selling,general and administrativeexpenses,and recognized assets and liabilities with currency forwards.The change in the value of the forward is h
195、eld in Accumulated other comprehensive income(loss)until the transaction affects earnings,at which time the change in value of the currency forward is reclassified to Net sales,Cost of goods sold,or Selling,general and administrative expenses.These hedges mature at various times through March 2024.O
196、f the amount currently in Accumulated other comprehensiveincome(loss),$4 million of deferred losses is expected to be reclassified to earnings in the next twelve months.Net investment hedges-The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards for which
197、the currency risk isremeasured through Accumulated other comprehensive income(loss).For currency forwards,the forward method is used.The change in the value of the forward isclassified in Accumulated other comprehensive income(loss)until the transaction affects earnings by way of either sale or subs
198、tantial liquidation of the foreignsubsidiary.The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies.The notional amount of the derivative is the number of units of the underlying(for example,the notional p
199、rincipal amount of the debt in an interest rate swap).Thenotional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Companys level of activity.TheCompany discloses derivative notional amounts on a gross basis.22Table of Contents(US$in m
200、illions)March 31,2023December 31,2022Unit ofMeasureHedging instrument type:Fair value hedges of interest rate riskInterest rate swap-notional amount$3,770$3,753$NotionalCumulative adjustment to long-term debt from application of hedge accounting$(279)$(341)$NotionalCarrying value of hedged debt$3,47
201、4$3,394$NotionalFair value hedges of currency riskCross currency swap$231$232$NotionalCarrying value of hedged debt$231$232$NotionalCash flow hedges of currency riskForeign currency forward-notional amount$247$310$NotionalForeign currency option-notional amount$81$108$NotionalNet investment hedgesFo
202、reign currency forward-notional amount$482$495$NotionalEconomic Hedge Derivatives-In addition to using derivatives in qualifying hedge relationships,the Company enters into derivatives to economicallyhedge its exposure to a variety of market risks it incurs in the normal course of operations.Interes
203、t rate derivatives are used to hedge exposures to the Companys financial instrument portfolios and debt issuances.The impact of changes in fairvalue of these instruments is primarily presented in Interest expense.Currency derivatives are used to hedge the balance sheet and commercial exposures that
204、arise from the Companys global operations.The impact ofchanges in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange(losses)gains whenhedging monetary exposures.Agricultural commodity derivatives are used primarily to manage the
205、Companys inventory and forward purchase and sales contracts.Contracts topurchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges.Contracts for thesale of agricultural commodities generally do not extend beyond one
206、 future crop cycle.The impact of changes in fair value of these instruments is presented in Costof goods sold.The Company uses derivative instruments referred to as forward freight agreements(FFAs)and FFA options to hedge portions of its current andanticipated ocean freight costs.The impact of chang
207、es 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 va
208、lue of these instruments is presented in Cost of goods sold.The Company may also enter into other derivatives,including credit default swaps,carbon emission derivatives and equity derivatives to manage itsexposure to credit risk and broader macroeconomic risks,respectively.The impact of changes in f
209、air value of these instruments is presented in Cost of goods sold.23Table of ContentsThe table below summarizes the volume of economic derivatives as of March 31,2023 and December 31,2022.For those contracts traded bilaterallythrough the over-the-counter markets(e.g.,forwards,forward rate agreements
210、(FRA),and swaps),the gross position is provided.For exchange traded(e.g.,futures,FFAs,and options)and cleared positions(e.g.,energy swaps),the net position is provided.March 31,December 31,20232022Unit ofMeasure(US$in millions)Long(Short)Long(Short)Interest rate Swaps$56$(1,361)$387$(1,267)$Notional
211、 Futures$(264)$(97)$Notional Forwards$1,316$(1,027)$NotionalCurrency Forwards$9,146$(11,459)$9,819$(9,682)$Notional Swaps$2,729$(2,166)$2,441$(2,876)$Notional Futures$(9)$11$Notional Options$1$(97)$(102)DeltaAgricultural commodities Forwards28,366,935(32,290,827)20,493,679(27,766,763)Metric Tons Swa
212、ps(1,864,265)(1,864,262)Metric Tons Futures(3,790,759)(4,092,772)Metric Tons Options137,095(350,844)1,025(216,647)Metric TonsOcean freight FFA(10,880)(11,197)Hire DaysNatural gas Forwards50,110(50,111)MMBtus Swaps649,763 1,460,190 MMBtus Futures26,061,635 5,250,393 MMBtusElectricity Swaps187,304(70,
213、239)22,987(8,619)MwhEnergy-other Swaps161,435 175,784 Metric Tons Futures 1,320,881 Metric TonsEnergy-CO2 Futures203,000 (38,000)Metric TonsOtherSwaps and futures$10$(65)$20$(50)$Notional24Table of ContentsThe Effect of Derivative Instruments and Hedge Accounting on the Condensed Consolidated Statem
214、ents of IncomeThe tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for thethree months ended March 31,2023 and 2022.Gain(Loss)Recognized inIncome on Derivative Instruments Three Months Ended March 31,(US$in millio
215、ns)20232022Income statement classificationType of derivativeNet salesHedge accountingForeign currency$1$2 Cost of goods soldHedge accountingForeign currency$1$Economic hedgesForeign currency84 493 Commodities396(1,255)Other(9)80 Total Cost of goods sold$472$(682)Selling,general&administrativeHedge A
216、ccountingForeign exchange$Interest expenseHedge accountingInterest rate$(33)$(6)Economic hedgesInterest rate2 Total Interest expense$(31)$(6)Foreign exchange(losses)gains Hedge accountingForeign currency$(2)$(12)Economic hedgesForeign currency33 59 Total Foreign exchange(losses)gains$31$47 Other inc
217、ome(expense)Economic hedgesInterest rate$1$Other comprehensive income(loss)Gains and losses on derivatives used as fair value hedges of foreign currency risk included in othercomprehensive income(loss)during the period$Gains and losses on derivatives used as cash flow hedges of foreign currency risk
218、 included in othercomprehensive income(loss)during the period$(5)$32 Gains and losses on derivatives used as net investment hedges included in other comprehensive income(loss)during the period$(21)$(149)Amounts released from accumulated other comprehensive income(loss)during the period Cash flow hed
219、ge of foreign currency risk$(1)$(2)Other includes results from freight,energy and other derivatives.(1)(1)25Table of Contents13.DEBTBunges$600 million commercial paper program is supported by an identical amount of committed back-up bank credit lines(the Liquidity Facility)provided by banks that are
220、 rated at least A-1 by S&P Global Ratings and P-1 by Moodys Investors Service.The cost of borrowing under the Liquidity Facilitywould typically be higher than the cost of issuing under Bunges commercial paper program.At March 31,2023,and December 31,2022,there were no borrowingsoutstanding under the
221、 commercial paper program and no borrowings under the Liquidity Facility,respectively.The Liquidity Facility is Bunges only revolvingcredit facility that requires lenders to maintain minimum credit ratings.The Liquidity Facility is set to expire on July 16,2026.Borrowings under the commercialpaper p
222、rogram typically have an original maturity of three months or less,resulting in net presentation of proceeds and repayments of short-term debt in thecondensed consolidated statements of cash flows.Bunge had no borrowings outstanding at March 31,2023,under the unsecured$1.1 billion 364-day Revolving
223、Credit Agreement(the$1.1 Billion CreditAgreement),with a group of lenders,entered into on July 15,2022,and maturing on July 14,2023.Bunge may from time-to-time request one or more of theexisting or new lenders to increase the total participations under the$1.1 Billion Credit Agreement by an aggregat
224、e amount up to$250 million pursuant to anaccordion provision.Borrowings will bear interest at the SOFR plus a credit spread adjustment and applicable margin,as defined in the$1.1 Billion CreditAgreement.Bunge had no borrowings outstanding at March 31,2023,and December 31,2022,under the unsecured com
225、mitted$1.35 billion 5-year Revolving CreditAgreement(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 theexisting or new lenders to increase the total commitments under the$1.35 Billion Credit Agreement by an aggregate
226、 amount up to$200 million pursuant to anaccordion provision.Borrowings will bear interest at LIBOR plus an applicable margin,as defined in the$1.35 Billion Credit Agreement.Bunge had no borrowings outstanding at March 31,2023,and December 31,2022,under the unsecured$865 million Revolving Credit Agre
227、ement(the$865 Million 2026 Facility)with a group of lenders,set to mature on October 29,2026.Borrowings will bear interest at SOFR plus a credit spread adjustmentand applicable margin,as defined in the$865 Million 2026 Facility.Bunge had no borrowings outstanding at March 31,2023,and December 31,202
228、2,under the unsecured$1.75 billion Revolving Credit Facility($1.75Billion Revolving Credit Facility),set to mature on December 16,2024.The interest rate under the$1.75 Billion Revolving Credit Facility is tied to certainsustainability criteria,including,but not limited to,science-based targets that
229、define Bunges climate goals within its operations and a commitment to adeforestation-free supply chain in 2025.Bunge may from time to time,with the consent of the agent,request one or more of the existing lenders or new lenders toincrease the total commitments by an amount not to exceed$250 million
230、pursuant to an accordion provision.Borrowings under the$1.75 Billion Revolving CreditFacility will bear interest at Term SOFR plus a credit spread adjustment,which will vary from 0.30%to 1.30%,based on the senior long-term unsecured debtratings provided by Moodys Investors Service and S&P Global Rat
231、ings.Bunge will also pay a fee that will vary from 0.10%to 0.40%based on its utilization of the$1.75 Billion Revolving Credit Facility.Borrowings under the committed revolving credit facilities described above typically have an original maturity of three months or less,resulting in netpresentation o
232、f proceeds and repayments of short-term debt in the condensed consolidated statements of cash flows.At March 31,2023,Bunge had$5,665 million unused and available committed borrowing capacity comprised of committed revolving credit facilities andthe commercial paper program with a number of financial
233、 institutions.At December 31,2022,Bunge had$6,665 million unused and available committedborrowing capacity comprised of committed revolving credit facilities and the commercial paper program with a number of financial institutions,totaling$5,665 million,and$1,000 million in committed unsecured delay
234、ed draw term loans,as discussed below.In addition to committed facilities,from time to time,Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term creditlines as necessary based on financing requirements.At March 31,2023,and December 31,2022,there were no borrowi
235、ngs,respectively,outstanding under thesebilateral short-term credit lines.Loans under such credit lines are non-callable by the respective lenders.In addition,Bunges operating companies had$540 millionand$546 million in short-term borrowings outstanding under local bank lines of credit at March 31,2
236、023,and December 31,2022,respectively,to support workingcapital requirements.The original maturity of borrowings under uncommitted bilateral credit lines and local bank lines of credit varies based upon the Companysfinancing objectives.As a result,proceeds and repayments of such credit lines may be
237、presented on a net basis,or separately,in the condensed consolidatedstatements of cash flows as dictated by the borrowings original maturity.26Table of ContentsThe fair value of Bunges long-term debt,including current portion,is calculated based on interest rates currently available on comparable ma
238、turities tocompanies with credit standing similar to that of Bunge.The carrying amounts and fair values of long-term debt are as follows:March 31,2023December 31,2022(US$in millions)CarryingValueFair Value(Level 2)CarryingValueFair Value(Level 2)Long-term debt,including current portion$5,180$5,221$4
239、,105$4,148 On August 5,2022,Bunge entered into an unsecured$250 million delayed draw term loan(the$250 million February 2023 Delayed Draw Term Loan)with a group of lenders that was required to be drawn by February 2,2023.The$250 million February 2023 Delayed Draw Term Loan bears interest at SOFR plu
240、sa credit spread adjustment and applicable margin,as defined in the$250 million February 2023 Delayed Draw Term Loan agreement.The$250 million February2023 Delayed Draw Term Loan was drawn on February 2,2023 and matures on August 5,2027.On July 26,2022,and later amended on October 7,2022,Bunge enter
241、ed into an unsecured$750 million delayed draw term loan(the$750 MillionDelayed Draw Term Loan)with a group of lenders giving Bunge the option to draw the loan by January 25,2023.The$750 Million Delayed Draw Term Loanbears interest at SOFR plus a credit spread adjustment and applicable margin,as defi
242、ned in the$750 Million Delayed Draw Term Loan agreement.The$750Million Delayed Draw Term Loan was drawn on January 25,2023 and matures on October 24,2025.14.RELATED PARTY TRANSACTIONSBunge purchases agricultural commodity products from certain of its unconsolidated investees and other related partie
243、s.Such related party purchasescomprised approximately 9%or less of total Cost of goods sold for the three months ended March 31,2023,and 2022.Bunge also sells agricultural commodityproducts to certain of its unconsolidated investees and other related parties.Such related party sales comprised approx
244、imately 2%or less of total Net sales for thethree months ended March 31,2023,and 2022.In addition,Bunge receives services from and provides services to its unconsolidated investees and other related parties,including tolling,port handling,administrative support,and other services.For the three month
245、s ended March 31,2023,and 2022,such services were not material to the Companys consolidatedresults.At March 31,2023,and December 31,2022,receivables related to the above related party transactions comprised approximately 1%or less of total Tradeaccounts receivable.At March 31,2023,and December 31,20
246、22,payables related to the above related party transactions comprised approximately 5%or less oftotal Trade accounts payable.Bunge believes all transaction values to be similar to those that would be conducted with third parties.15.COMMITMENTS AND CONTINGENCIESBunge is party to claims and lawsuits,p
247、rimarily non-income tax and labor claims in South America,arising in the normal course of business.Bunge is alsoinvolved from time to time in various contract,antitrust,environmental litigation and remediation,and other litigation,claims,government investigations,and legalproceedings.The ability to
248、predict the ultimate outcome of such matters involves judgments,estimates and inherent uncertainties.Bunge records liabilities relatedto legal matters when the exposure item becomes probable and can be reasonably estimated.Bunge management does not expect these matters to have a materialadverse effe
249、ct on Bunges financial condition,results of operations,or liquidity.However,these matters are subject to inherent uncertainties and there exists theremote possibility that a liability arising from these matters could have a material adverse impact in the period in which the uncertainties are resolve
250、d should theliability substantially exceed the amount of provisions included in the condensed consolidated balance sheets.Information regarding the claims appears in BungesReport on Form 10-K for the year ended December 31,2022.Included in Other non-current liabilities as of March 31,2023,and Decemb
251、er 31,2022,are thefollowing amounts related to these matters:27Table of Contents(US$in millions)March 31,2023December 31,2022Non-income tax claims$20$20 Labor claims73 76 Civil and other claims106 105 Total$199$201 Brazil Indirect Taxes-non-income tax claims-These tax claims relate to claims against
252、 Bunges Brazilian subsidiaries,primarily value-added tax claims(ICMS,ISS,IPI and PIS/COFINS).The Company continues to evaluate the merits of outstanding claims from examinations of ICMS and PIS/COFINS tax returns concluded by Brazilianfederal and state tax authorities and will recognize them if and
253、when loss is considered probable.The outstanding claims comprise the following:(US$in millions)Years ExaminedMarch 31,2023December 31,2022ICMS1990 to Present$218$215 PIS/COFINS2002 to Present$354$347 Labor claims The labor claims are principally against Bunges Brazilian subsidiaries.The labor claims
254、 primarily relate to dismissals,severance,healthand safety,salary adjustments,and supplementary retirement benefits.Civil and other claims The civil and other claims relate to various disputes with third parties,including suppliers and customers.Guarantees Bunge has issued or was a party to the foll
255、owing guarantees at March 31,2023:(US$in millions)MaximumPotentialFuturePaymentsUnconsolidated affiliates guarantee(1)$105 Residual value guarantee(2)338 Russia disposition indemnity(3)235 Other guarantees10 Total$688(1)Bunge has issued guarantees to certain financial institutions related to debt of
256、 certain of its unconsolidated affiliates.The terms of the guarantees are equalto the terms of the related financings,which have maturity dates through 2034.There are no recourse provisions or collateral that would enable Bunge torecover any amounts paid under these guarantees.In addition,certain Bu
257、nge subsidiaries have guaranteed the obligations of certain of their unconsolidatedaffiliates and in connection therewith have secured their guarantee obligations through a pledge to the financial institutions of certain of theirunconsolidated affiliates shares plus loans receivable from the unconso
258、lidated affiliates in the event that the guaranteed obligations are enforced.Based onamounts drawn under such debt facilities at March 31,2023,Bunges potential liability was$81 million,and it has recorded less than$1 million obligationrelated to these guarantees within Other non-current liabilities.
259、(2)Bunge has issued guarantees to certain financial institutions that 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 vari
260、ous datesfrom 2024 through 2029.At March 31,2023,no obligation has been recorded related to these guarantees.Any obligation recorded would be recognized inCurrent operating lease obligations or Non-current operating lease obligations.(3)On February 3,2023,Bunge agreed to indemnify the buyer of its R
261、ussian operations against certain existing legal claims involving Bunges Russiansubsidiary.The indemnity expires on February 2,2030.As of March 31,2023,Bunge recorded a$9 million obligation related to this indemnity withinOther non-current liabilities.Bunge Limited has provided a guarantee to the Di
262、rector of the Illinois Department of Agriculture as Trustee for Bunge North America,Inc.(BNA),anindirect wholly-owned subsidiary,which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who havedelivered commodities to BNAs Illinois facilities.2
263、8Table of Contents16.OTHER NON-CURRENT LIABILITIESOther non-current liabilities consist of the following:(US$in millions)March 31,2023December 31,2022Labor,legal,and other provisions$205$205 Pension and post-retirement obligations150 152 Uncertain income tax positions 61 59 Unrealized losses on deri
264、vative contracts,at fair value 275 332 Other111 101 Total$802$849(1)See Note 9-Income Taxes.(2)See Note 11-Fair Value Measurements.17.EQUITYShare repurchase program During October 2021,Bunges Board of Directors approved a program for the repurchase of up to$500 million of Bungesissued and outstandin
265、g common shares.The program has no expiration date.To date under the program,2,109,115 common shares were repurchased for$200 million.As of March 31,2023,$300 million remains outstanding for repurchases under the program.Dividends on common shares On February 22,2023,Bunge announced that the Company
266、s Board of Directors had declared a dividend of$0.625 percommon share,payable on June 2,2023,to shareholders of record on May 19,2023.Accumulated other comprehensive income(loss)attributable to Bunge The following table summarizes the balances of related after-tax components ofAccumulated other comp
267、rehensive income(loss)attributable to Bunge:(US$in millions)Foreign ExchangeTranslationAdjustmentDeferredGains(Losses)on HedgingActivitiesPension and OtherPostretirementLiabilityAdjustmentsAccumulatedOtherComprehensiveIncome(Loss)Balance,January 1,2023$(5,926)$(343)$(102)$(6,371)Other comprehensive
268、income(loss)before reclassifications122(26)96 Amount reclassified from accumulated other comprehensive income(loss)103 1 104 Balance,March 31,2023$(5,701)$(368)$(102)$(6,171)(US$in millions)Foreign ExchangeTranslationAdjustmentDeferredGains(Losses)on HedgingActivitiesPension and OtherPostretirementL
269、iabilityAdjustments(1)AccumulatedOtherComprehensiveIncome(Loss)Balance,January 1,2022$(6,093)$(254)$(124)$(6,471)Other comprehensive income(loss)before reclassifications396(117)279 Amount reclassified from accumulated other comprehensive income(loss)(2)(19)(21)Balance,March 31,2022$(5,697)$(373)$(14
270、3)$(6,213)(1)On February 28,2022,the Company,together with plan participants and related employee unions,agreed to the transition of one of the Companysinternational defined benefit pension plans to a multi-employer pension plan.Following the transition,the Company accounts for the multi-employer pl
271、ansimilar to a defined contribution plan,resulting in full settlement of the related defined benefit plan obligations.In connection with the settlement,during the three months ended March 31,2022,the Company reclassified$27 million(net of$10 million tax expense)in unamortized actuarial gains from Ac
272、cumulated other comprehensive income(loss),of which$19 million was attributable to Bunge(net of$7 million intax expense),and$8 million was attributable to redeemable non-controlling interest(net of$3 million in tax expense).(1)(2)29Table of Contents18.EARNINGS PER COMMON SHAREThe following table set
273、s forth the computation of basic and diluted earnings per common share.Three Months EndedMarch 31,(US$in millions,except for share data)20232022Net income(loss)attributable to Bunge common shareholders$632$688 Weighted-average number of common shares outstanding:Basic150,079,448 142,516,888 Effect o
274、f dilutive shares:stock options and awards 2,184,544 3,127,275 convertible preference shares 7,976,765 Diluted152,263,992 153,620,928 Earnings per common share:Net income(loss)attributable to Bunge common shareholdersbasic$4.21$4.83 Net income(loss)attributable to Bunge common shareholdersdiluted$4.
275、15$4.48(1)Effective March 23,2022,(the Conversion Date),in accordance with the terms of the certificate of designation governing the convertible preferenceshares,all of the Companys issued and outstanding convertible preference shares were automatically converted into 1.2846 common shares of theComp
276、any,par value$0.01 per share.As a result of this conversion,dividends on the convertible preference shares ceased to accrue on the ConversionDate.(2)The weighted-average common shares outstanding-diluted exclude less than one million stock options and contingently issuable restricted stock units,whi
277、ch were not dilutive and not included in the computation of earnings per share for each of the three months ended March 31,2023,and 2022.19.SEGMENT INFORMATIONThe Companys operations are organized,managed,and classified into four reportable segments-Agribusiness,Refined and Specialty Oils,Milling,an
278、dSugar and Bioenergy,based upon their similar economic characteristics,products and services offered,production processes,types and classes of customer,anddistribution methods.The Companys remaining operations are not reportable segments,as defined by the applicable accounting standard,and are class
279、ified asCorporate and Other.The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin.The Refinedand Specialty Oils segment involves the processing,production,and marketing of products derived from vegetable oils.The Milli
280、ng segment involves theprocessing,production,and marketing of products derived primarily from wheat and corn.The Sugar and Bioenergy reportable segment primarily comprises the netearnings in the Companys 50%interest in BP Bunge Bioenergia,a joint venture with BP p.l.c.(BP).Corporate and Other includ
281、es salaries and overhead for corporate functions that are not allocated to the Companys individual reporting segments becausethe operating performance of each reporting segment is evaluated by the Companys chief operating decision maker exclusive of these items,as well as certain otheractivities inc
282、luding Bunge Ventures,the Companys captive insurance activities,securitization program,and certain income tax assets and liabilities.Transfers between segments are generally valued at market.Segment revenues generated from these transfers are shown in the following table as“Inter-segment revenues.”(
283、2)(1)30Table of ContentsThree Months Ended March 31,2023(US$in millions)AgribusinessRefined andSpecialty OilsMillingSugar andBioenergyCorporate andOtherEliminationsTotalNet sales to external customers$10,852$3,888$515$64$9$15,328 Intersegment revenues2,156 37 164 (2,357)Cost of goods sold(10,044)(3,
284、546)(484)(64)(9)(14,147)Gross profit808 342 31 1,181 Selling,general and administrativeexpenses(132)(95)(21)(105)(353)Foreign exchange(losses)gains39 5 5 49 EBIT attributable to noncontrollinginterests(21)(4)(25)Other income(expense)-net11(15)(1)20 15 Income(loss)from affiliates 19 19 Total Segment
285、EBIT705 233 9 19(80)886 Total assets17,366 3,656 1,157 334 4,597 27,110 Three Months Ended March 31,2022(US$in millions)AgribusinessRefined andSpecialty OilsMillingSugar andBioenergyCorporate andOtherEliminationsTotalNet sales to external customers$11,231$3,976$603$64$6$15,880 Intersegment revenues2
286、,487 112 375 (2,974)Cost of goods sold(10,367)(3,714)(532)(62)(1)(14,676)Gross profit864 262 71 2 5 1,204 Selling,general and administrativeexpenses(121)(89)(24)(74)(308)Foreign exchange(losses)gains9 3 12 EBIT attributable to noncontrollinginterests(4)3 (12)(13)Other income(expense)-net(63)(3)19 (4
287、7)Income(loss)from affiliates14 32(1)45 Total Segment EBIT 699 173 50 34(63)893 Total assets20,607 4,383 1,482 322 1,930 28,724(1)Include noncontrolling interests share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Net(income)loss attrib
288、utable to noncontrolling interests and redeemable noncontrolling interests.(2)Total segment earnings before interest and taxes(EBIT)is an operating performance measure used by Bunges management to evaluate segmentoperating activities.Bunges management believes Total Segment EBIT is a useful measure
289、of operating profitability,since the measure allows for anevaluation of the performance of its segments without regard to its financing methods or capital structure.In addition,EBIT is a financial measure that iswidely used by analysts and investors in Bunges industry.Total Segment EBIT is a non-GAA
290、P financial measure and is not intended to replace Netincome(loss)attributable to Bunge,the most directly comparable U.S.GAAP financial measure.Further,Total Segment EBIT is not a measure ofconsolidated operating results under U.S.GAAP and should not be considered as an alternative to Net income(los
291、s)or any other measure of consolidatedoperating results under U.S.GAAP.See the reconciliation of Total Segment EBIT to Net income(loss)attributable to Bunge in the table below.(1)(2)(1)(2)31Table of ContentsA reconciliation of Net income(loss)attributable to Bunge to Total Segment EBIT follows:Three
292、 Months EndedMarch 31,(US$in millions)20232022Net income(loss)attributable to Bunge$632$688 Interest income(43)(9)Interest expense112 111 Income tax expense(benefit)183 108 Noncontrolling interests share of interest and tax2(5)Total Segment EBIT$886$893 The Companys revenue comprises sales from comm
293、odity contracts that are accounted for under ASC 815,Derivatives and Hedging(ASC 815)and salesof other products and services that are accounted for under ASC 606,Revenue from Contracts with Customers(ASC 606).The following tables provide adisaggregation of Net sales to external customers between sal
294、es from commodity contracts(ASC 815)and sales from contracts with customers(ASC 606):Three Months Ended March 31,2023(US$in millions)AgribusinessRefined and SpecialtyOilsMillingSugar andBioenergyCorporate and OtherTotalSales from commodity contracts(ASC 815)$10,288$178$74$64$10,604 Sales from contra
295、cts with customers(ASC 606)564 3,710 441 9 4,724 Net sales to external customers$10,852$3,888$515$64$9$15,328 Three Months Ended March 31,2022(US$in millions)AgribusinessRefined and SpecialtyOilsMillingSugar andBioenergyCorporate and OtherTotalSales from commodity contracts(ASC 815)$10,567$251$62$63
296、$10,943 Sales from contracts with customers(ASC 606)664 3,725 541 1 6 4,937 Net sales to external customers$11,231$3,976$603$64$6$15,880 32Table of ContentsCautionary Statement Regarding Forward Looking StatementsThis report contains both historical and forward looking statements.All statements,othe
297、r than statements of historical fact are,or may be deemed to be,forward looking statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,as amended(Exchange Act).These forward looking statements are not based on hist
298、orical facts,but rather reflect our current expectations and projections about ourfuture results,performance,prospects and opportunities.We have tried to identify these forward looking statements by using words including“may,”“will,”“should,”“could,”“expect,”“anticipate,”“believe,”“plan,”“intend,”“e
299、stimate,”“continue”and similar expressions.These forward looking statements are subjectto a number of risks,uncertainties,assumptions and other factors that could cause our actual results,performance,prospects or opportunities to differ materiallyfrom those expressed in,or implied by,these forward l
300、ooking statements.These factors include the risks,uncertainties,trends and other factors described in ourForm 10-K,Form 10-Q,and Form 8-K reports(including all amendments to those reports)and include:the impact on our employees,operations,and facilities fromthe war in Ukraine and the resulting econo
301、mic and other sanctions imposed on Russia,including the impact on Bunge resulting from the continuation and/orescalation of the war and sanctions against Russia;the effect of weather conditions and the impact of crop and animal disease on our business;the impact of globaland regional economic,agricu
302、ltural,financial and commodities market,political,social and health conditions;changes in governmental policies and laws affectingour business,including agricultural and trade policies,financial markets regulation and environmental,tax and biofuels regulation;the impact of seasonality;theimpact of g
303、overnment policies and regulations;the outcome of pending regulatory and legal proceedings;our ability to complete,integrate and benefit fromacquisitions,divestitures,joint ventures and strategic alliances;the impact of industry conditions,including fluctuations in supply,demand and prices foragricu
304、ltural commodities and other raw materials and products that we sell and use in our business,fluctuations in energy and freight costs and competitivedevelopments in our industries;the effectiveness of our capital allocation plans,funding needs and financing sources;the effectiveness of our risk mana
305、gementstrategies;operational risks,including industrial accidents,natural disasters,pandemics or epidemics and cybersecurity incidents;changes in foreign exchangepolicy or rates;the impact of our dependence on third parties;our ability to attract and retain executive management and key personnel;and
306、 other factors affectingour business generally.The forward looking statements included in this report are made only as of the date of this report,and except as otherwise required by federal securitieslaw,we do not have any obligation to publicly update or revise any forward looking statements to ref
307、lect subsequent events or circumstances.You should refer to“Item 1A.Risk Factors”in our Annual Report on Form 10-K for the year ended December 31,2022,filed with the SEC onFebruary 24,2023,and“Part II Item 1A.Risk Factors”in this Quarterly Report on Form 10-Q for a more detailed discussion of these
308、factors.33Table of ContentsITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSFirst Quarter 2023 OverviewYou should refer to Item 7,Managements Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting OperatingResults in our A
309、nnual Report on Form 10-K for the year ended December 31,2022,for a discussion of key factors affecting operating results in each of ourbusiness segments.In addition,you should refer to Item 9A,Controls and Procedures in our Annual Report on Form 10-K for the year ended December 31,2022,and to Item
310、4,Controls and Procedures in this Quarterly Report on Form 10-Q for the period ended March 31,2023,for a discussion of our internal controls overfinancial reporting.Non-U.S.GAAP Financial MeasuresTotal segment earnings before interest and taxes(EBIT)is an operating performance measure used by Bunges
311、 management to evaluate segmentoperating activities.Bunge also uses Core Segment EBIT,Non-core Segment EBIT and Total Segment EBIT to evaluate the operating performance of Bunges Corereportable segments,Non-core reportable segments,and Total reportable segments together with Corporate and Other.Core
312、 Segment EBIT is the aggregate of theEBIT of each of Bunges Agribusiness,Refined and Specialty Oils,and Milling segments.Non-core Segment EBIT is the EBIT of Bunges Sugar&Bioenergysegment.Total Segment EBIT is the aggregate of the EBIT of Bunges Core and Non-core reportable segments,together with Co
313、rporate and Other.Bungesmanagement believes Core Segment EBIT,Non-core Segment EBIT,and Total Segment EBIT are useful measures of operating profitability since the measuresallow for an evaluation of the performance of its segments without regard to financing methods or capital structure.In addition,
314、EBIT is a financial measure that iswidely used by analysts and investors in Bunges industry.Total Segment EBIT is a non-U.S.GAAP financial measure and is not intended to replace Net incomeattributable to Bunge,the most directly comparable U.S.GAAP financial measure.Further,Total Segment EBIT exclude
315、s EBIT attributable to noncontrollinginterests and is not a measure of consolidated operating results under U.S.GAAP and should not be considered as an alternative to Net income or any other measureof consolidated operating results under U.S.GAAP.See the reconciliation of Net income attributable to
316、Bunge to Total Segment EBIT below.Cash provided by(used for)operating activities,adjusted is calculated by including the Proceeds from beneficial interests in securitized trade receivableswith Cash provided by(used for)operating activities.Cash provided by(used for)operating activities,adjusted is a
317、 non-U.S.GAAP financial measure and is notintended to replace Cash provided by(used for)operating activities,the most directly comparable U.S.GAAP financial measure.Our management believespresentation of this measure allows investors to view our cash generating performance using the same measure tha
318、t management uses in evaluating financial andbusiness performance and trends.Executive SummaryNet Income(Loss)Attributable to Bunge-For the three months ended March 31,2023,Net income attributable to Bunge was$632 million,a decrease of$56 million compared to$688 million for the three months ended Ma
319、rch 31,2022.The decrease for the three months ended March 31,2023,was due to higherincome tax expense as discussed further below and lower Segment EBIT in our Non-core segment and Corporate and Other activities,as further discussed in theSegment Overview&Results of Operations section below.Earnings
320、Per Common Share-Diluted-For the three months ended March 31,2023,Net income attributable to Bunge common shareholders,diluted,was$4.15 per share,a decrease of$0.33 per share,compared to income of$4.48 per share for the three months ended March 31,2022.EBIT-For the three months ended March 31,2023,T
321、otal Segment EBIT was$886 million,a decrease of$7 million compared to Total Segment EBIT of$893 million for the three months ended March 31,2022.The decrease in Total Segment EBIT for the three months ended March 31,2023,was due to lowerSegment EBIT in our Non-core segment and Corporate and Other ac
322、tivities,partially offset by higher Segment EBIT in our Core segments,as further discussed inthe Segment Overview&Results of Operations section below.Income Tax(Expense)Benefit-Income tax expense was$183 million for the three months ended March 31,2023 compared to income tax expense of$108million fo
323、r the three months ended March 31,2022.The increase was primarily34Table of Contentsdue to an unfavorable earnings mix in 2023,as well as higher tax benefits in 2022 from releases of valuation allowances in Europe and Asia.Liquidity and Capital Resources At March 31,2023,working capital,which equals
324、 Total current assets less Total current liabilities,was$8,632 million,an increase of$1,602 million,compared to working capital of$7,030 million at March 31,2022,and an increase of$1,474 million,compared to working capital of$7,158 million at December 31,2022.The increases in working capital at Marc
325、h 31,2023,compared to March 31,2022,and December 31,2022,were primarilydue to a higher cash and cash equivalents balance,driven by strong operating cash flows,which is managed in accordance with our investment policy,theobjectives of which are to preserve the principal value of our cash assets,maint
326、ain a high degree of liquidity,and deliver competitive returns subject to prevailingmarket conditions.Segment Overview&Results of OperationsOur operations are organized,managed and classified into four reportable segments based upon their similar economic characteristics,nature of productsand servic
327、es offered,production processes,types and classes of customer,and distribution methods.We further organize these reportable segments into Coreoperations and Non-core operations.Core operations comprise our Agribusiness,Refined and Specialty Oils,and Milling segments.Non-core operations compriseour S
328、ugar&Bioenergy segment,which itself primarily comprises the Companys 50%interest in the net earnings of BP Bunge Bioenergia,a joint venture with BPp.l.c.(BP).Our remaining operations are not reportable segments,as defined by the applicable accounting standard,and are classified as Corporate and Othe
329、r.Corporate and Other includes salaries and overhead for corporate functions that are not allocated to our individual reportable segments because the operatingperformance of each reportable segment is evaluated by the Companys chief operating decision maker exclusive of these items,as well as certai
330、n other activitiesincluding Bunge Ventures,the Companys captive insurance activities,securitization program,and certain income tax assets and liabilities.35Table of ContentsA reconciliation of Net income(loss)attributable to Bunge to Total Segment EBIT follows:Three Months EndedMarch 31,(US$in milli
331、ons)20232022Net income(loss)attributable to Bunge$632$688 Interest income(43)(9)Interest expense112 111 Income tax expense(benefit)183 108 Noncontrolling interests share of interest and tax2(5)Total Segment EBIT$886$893 Agribusiness Segment EBIT705 699 Refined and Specialty Oils Segment EBIT233 173
332、Milling Segment EBIT9 50 Core Segment EBIT947 922 Corporate and Other EBIT(80)(63)Sugar and Bioenergy Segment EBIT19 34 Non-core Segment EBIT19 34 Total Segment EBIT$886$893 Core SegmentsAgribusiness SegmentThree Months EndedMarch 31,(US$in millions,except volumes)20232022%ChangeVolumes(in thousand
333、metric tons)18,386 20,070(8)%Net sales$10,852$11,231(3)%Cost of goods sold(10,044)(10,367)(3)%Gross profit808 864(6)%Selling,general and administrative expense(132)(121)9%Foreign exchange(losses)gains39 9 333%EBIT attributable to noncontrolling interests(21)(4)425%Other income(expense)net11(63)117%Income(loss)from affiliates 14(100)%Total Agribusiness Segment EBIT$705$699 1%Three Months Ended Marc