Bunge SA(BG) - 2024 Q3 - Quarterly Report

PART I — FINANCIAL INFORMATION This section presents Bunge Global SA's unaudited condensed consolidated financial statements and management's analysis for interim periods Item 1. Financial Statements (Unaudited) This section presents Bunge Global SA's unaudited condensed consolidated financial statements, covering income, balance sheets, cash flows, equity, and related notes Condensed Consolidated Statements of Income (Loss) This statement details Bunge Global SA's revenues, expenses, and net income for the three and nine months ended September 30 | Metric | Three Months Ended Sep 30, 2024 ($M) | Three Months Ended Sep 30, 2023 ($M) | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :---------------------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Net sales | 12,908 | 14,227 | 39,566 | 44,604 | | Gross profit | 772 | 1,045 | 2,312 | 3,591 | | Income (loss) before income tax | 322 | 503 | 794 | 2,172 | | Net income (loss) | 233 | 389 | 558 | 1,677 | | Net income (loss) attributable to Bunge shareholders | 221 | 373 | 535 | 1,627 | | Earnings per share—basic | 1.57 | 2.50 | 3.77 | 10.85 | | Earnings per share—diluted | 1.56 | 2.47 | 3.73 | 10.71 | - Net income attributable to Bunge shareholders decreased by $152 million (40.75%) for the three months ended September 30, 2024, and by $1,092 million (67.12%) for the nine months ended September 30, 2023[5] Condensed Consolidated Statements of Comprehensive Income (Loss) This statement presents Bunge Global SA's net income and other comprehensive income components for the three and nine months ended September 30 | Metric | Three Months Ended Sep 30, 2024 ($M) | Three Months Ended Sep 30, 2023 ($M) | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :-------------------------------------------------------------------------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Net income (loss) | 233 | 389 | 558 | 1,677 | | Total other comprehensive income (loss) | 109 | (137) | (303) | 142 | | Total comprehensive income (loss) | 342 | 252 | 255 | 1,819 | | Total comprehensive income (loss) attributable to Bunge | 313 | 240 | 235 | 1,774 | - Total other comprehensive income (loss) shifted from a loss of $137 million in Q3 2023 to a gain of $109 million in Q3 2024, primarily due to foreign exchange translation adjustments[7] Condensed Consolidated Balance Sheets This statement provides a snapshot of Bunge Global SA's assets, liabilities, and equity as of September 30, 2024, and December 31, 2023 | Metric | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------ | :---------------- | :---------------- | | Total assets | 25,267 | 25,372 | | Total current assets | 15,919 | 16,350 | | Cash and cash equivalents | 2,836 | 2,602 | | Inventories | 7,465 | 7,105 | | Total current liabilities | 7,691 | 7,687 | | Total Bunge shareholders' equity | 10,135 | 10,851 | | Total equity | 11,156 | 11,814 | - Total assets slightly decreased from $25,372 million at December 31, 2023, to $25,267 million at September 30, 2024. Total Bunge shareholders' equity decreased by $716 million, primarily due to share repurchases and dividends[10][255] Condensed Consolidated Statements of Cash Flows This statement outlines Bunge Global SA's cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30 | Activity | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :------------------------------------------------ | :---------------------------------- | :---------------------------------- | | Cash provided by (used for) operating activities | 847 | 1,860 | | Cash provided by (used for) investing activities | (957) | (646) | | Cash provided by (used for) financing activities | 376 | (213) | | Net increase (decrease) in cash and cash equivalents, and restricted cash | 266 | 1,041 | - Cash provided by operating activities decreased significantly by $1,013 million, primarily due to lower net income. Cash used for investing activities increased by $311 million, mainly due to lower proceeds from asset disposals and higher capital expenditures. Cash provided by financing activities shifted from a use of $213 million to a provision of $376 million, driven by net debt proceeds[13][260][262][263] Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests This statement details changes in Bunge Global SA's equity and redeemable noncontrolling interests from January 1 to September 30, 2024 | Metric | Balance, Jan 1, 2024 ($M) | Balance, Sep 30, 2024 ($M) | | :---------------------------------------------- | :------------------------ | :----------------------- | | Total Bunge shareholders' equity | 10,851 | 10,135 | | Net income (loss) attributable to Bunge shareholders | 535 | 535 | | Other comprehensive income (loss) | (303) | (303) | | Dividends on registered shares | (380) | (380) | | Repurchase of registered shares | (600) | (600) | - Total Bunge shareholders' equity decreased by $716 million from January 1, 2024, to September 30, 2024, primarily due to $600 million in share repurchases and $380 million in declared dividends, partially offset by $535 million in net income[17][255] Notes to the Condensed Consolidated Financial Statements These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies and specific line items 1. BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES The financial statements adhere to U.S. GAAP, Bunge Global SA redomesticated to Switzerland, and new SEC/FASB standards are under evaluation - Bunge Global SA completed its redomestication from Bermuda to Switzerland on November 1, 2023, with shares trading on the NYSE under 'BG'[21] - The company is evaluating the impact of new SEC climate-related disclosure rules (effective for annual periods ending December 31, 2025, pending judicial review) and FASB ASU 2023-09 (Improvements to Income Tax Disclosures, effective after December 15, 2024) and ASU 2023-07 (Improvements to Reportable Segment Disclosures, effective after December 15, 2023)[24][25][26] Cash and cash equivalents and restricted cash | Cash and cash equivalents and restricted cash | Sep 30, 2024 ($M) | Sep 30, 2023 ($M) | | :-------------------------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | 2,836 | 2,173 | | Restricted cash included in Other current assets | 53 | 20 | | Total | 2,889 | 2,193 | 2. ACQUISITIONS AND DISPOSITIONS Bunge is actively pursuing strategic acquisitions, including Viterra and CJ Latam, while divesting interests in BP Bunge Bioenergia and Bunge Iberica SA - Bunge entered into a definitive business combination agreement to acquire Viterra in a stock and cash transaction, with Viterra shareholders anticipated to receive approximately 65.6 million registered shares (approx. $6.3 billion value as of Sep 30, 2024) and $2.0 billion in cash[27][28] - Bunge secured $8.0 billion in acquisition debt financing for Viterra, which was reduced to $6.0 billion after issuing $2.0 billion in unsecured senior notes[29][141][142] - Bunge approved a $1.7 billion expansion of its share repurchase program, bringing the aggregate program size to $2.0 billion. As of September 30, 2024, $800 million remains outstanding under the program[33][160] - Bunge entered into an agreement to acquire CJ Latam Participações Ltda. and CJ Selecta S.A. for approximately $510 million in cash, expected to close in late 2024[34] - Bunge completed the sale of its 50% ownership share in BP Bunge Bioenergia for an approximate total net amount of $828 million on October 1, 2024[35] - Bunge will divest 40% of its Spanish operating subsidiary, Bunge Iberica SA, to Repsol for $300 million plus up to $40 million in contingent payments, expected to close in early 2025[38] 3. TRADE STRUCTURED FINANCE PROGRAM Bunge utilizes trade structured finance activities, including LCs and time deposits, to enhance financial flexibility, with $7,461 million netted on the balance sheet - Bunge engages in trade structured finance activities, netting time deposits and LCs on the balance sheet when criteria are met[39][40] Trade structured finance metrics | Metric | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------------------------------ | :---------------- | :---------------- | | Time deposits and LCs presented net on balance sheets | 7,461 | 6,880 | | Weighted-average interest rates on time deposits | 5.56% | 5.77% | | Total net proceeds from issuances of LCs (Nine Months Ended Sep 30) | 5,200 | 4,646 | 4. TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM Bunge maintains an allowance for credit losses on trade accounts receivable and operates a securitization program providing up to $1.5 billion in funding Allowance for Credit Losses | Metric | Sep 30, 2024 ($M) | Jan 1, 2024 ($M) | | :----------------------------------- | :---------------- | :--------------- | | Allowance for Credit Losses (Total) | 118 | 136 | | Current period provisions | 39 | 38 | | Recoveries | (42) | (40) | | Write-offs charged against allowance | (9) | (8) | - Bunge's trade receivables securitization program provides funding of up to $1.5 billion, with a termination date of May 17, 2031, and includes sustainability provisions tied to climate goals and deforestation-free supply chain commitments[45] Receivables securitization program balances | Metric | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------------------------------ | :---------------- | :---------------- | | Receivables sold which were derecognized from Bunge's balance sheet | 1,172 | 1,230 | | Receivables pledged to the administrative agent | 226 | 343 | Receivables securitization program activity | Metric | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :------------------------------------------------------------------ | :---------------------------------- | :---------------------------------- | | Gross receivables sold | 8,809 | 10,231 | | Proceeds received in cash related to transfers of receivables | 8,776 | 10,186 | | Cash collections from customers on receivables previously sold | 8,868 | 10,231 | | Discounts related to gross receivables sold | 33 | 45 | 5. INVENTORIES Total inventories increased to $7,465 million at September 30, 2024, driven by Agribusiness volumes, with RMI comprising $6,195 million Inventories by segment | Segment | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :--------------------------- | :---------------- | :---------------- | | Agribusiness | 6,163 | 5,830 | | Refined and Specialty Oils | 1,134 | 1,096 | | Milling | 162 | 175 | | Corporate and Other | 6 | 4 | | Total Inventories | 7,465 | 7,105 | Readily marketable inventories (RMI) by segment | Segment | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------- | :---------------- | :---------------- | | Agribusiness (RMI) | 5,846 | 5,519 | | Refined and Specialty Oils (RMI) | 334 | 302 | | Milling (RMI) | 15 | 16 | | Total Readily Marketable Inventories | 6,195 | 5,837 | - RMI are agricultural commodity inventories carried at fair value due to their commodity characteristics, widely available markets, and international pricing mechanisms[51] 6. OTHER CURRENT ASSETS Other current assets decreased to $3,518 million at September 30, 2024, primarily due to lower unrealized gains on derivatives and reduced secured advances Other Current Assets breakdown | Other Current Assets | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :-------------------------------------------------- | :---------------- | :---------------- | | Unrealized gains on derivative contracts, at fair value | 1,025 | 1,481 | | Prepaid commodity purchase contracts | 393 | 320 | | Secured advances to suppliers, net | 178 | 462 | | Recoverable taxes, net | 302 | 378 | | Margin deposits | 773 | 618 | | Marketable securities and other short-term investments | 178 | 105 | | Income taxes receivable | 86 | 54 | | Prepaid expenses | 194 | 346 | | Restricted cash | 53 | 21 | | Other | 336 | 266 | | Total | 3,518 | 4,051 | - Secured advances to suppliers, primarily Brazilian soybean farmers, decreased from $462 million to $178 million, reflecting a reduction in new advances due to market conditions[54] - Unrealized gains on derivative contracts decreased by $456 million, contributing to the overall decrease in other current assets[54] 7. OTHER NON-CURRENT ASSETS Other non-current assets decreased to $595 million at September 30, 2024, including judicial deposits and long-term receivables, many from Brazilian operations Other Non-Current Assets breakdown | Other Non-Current Assets | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :-------------------------------------------- | :---------------- | :---------------- | | Recoverable taxes, net | 20 | 25 | | Judicial deposits | 100 | 120 | | Other long-term receivables, net | 16 | 16 | | Income taxes receivable | 135 | 136 | | Long-term investments | 174 | 142 | | Affiliate loans receivable | 8 | 8 | | Long-term receivables from farmers in Brazil, net | 28 | 43 | | Unrealized gains on derivative contracts, at fair value | 1 | 1 | | Other | 113 | 124 | | Total | 595 | 615 | - A significant portion of these non-current assets, such as recoverable taxes, judicial deposits, and income taxes receivable, arise from Brazilian operations and their realization could take several years[57] Long-term receivables from farmers in Brazil | Long-term receivables from farmers in Brazil | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------- | :---------------- | :---------------- | | Recorded Investment (Total) | 56 | 74 | | Allowance (Total) | 28 | 31 | 8. INVESTMENTS IN AFFILIATES AND VARIABLE INTEREST ENTITIES Bunge is divesting BP Bunge Bioenergia, acquiring T-39, recorded a $19 million impairment, and consolidates certain VIEs while managing exposure to others - Bunge entered into a share purchase agreement to sell its 50% ownership share in BP Bunge Bioenergia, which closed on October 1, 2024[67] - Bunge plans to acquire a 25% interest in Terminal XXXIX De Santos S.A. (T-39) for approximately $54 million, with closing expected in early 2025[67] - An impairment charge of $19 million was recorded during the nine months ended September 30, 2024, associated with a minority investment in North America[69] - Bunge consolidates Variable Interest Entities (VIEs) such as Terminal de Granéis de Santa Catarina (TGSC) and Bunge Chevron Ag Renewables LLC (BCAR) where it is deemed the primary beneficiary[70][71] Consolidated VIEs (Assets and Liabilities) | Consolidated VIEs (Assets) | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------- | :---------------- | :---------------- | | Total assets | 1,097 | 1,116 | | Total liabilities | 146 | 262 | - Bunge's maximum exposure to loss associated with non-consolidated VIEs increased by approximately $96 million in 2024 due to future commitments[76] 9. INCOME TAXES Income tax expense decreased for the three and nine months ended September 30, 2024, with an effective tax rate higher than the U.S. statutory rate due to jurisdictional mix and foreign currency Income tax expense (benefit) | Metric | Three Months Ended Sep 30, 2024 ($M) | Three Months Ended Sep 30, 2023 ($M) | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Income tax expense (benefit) | 89 | 114 | 236 | 495 | - The effective tax rate for both periods in 2024 was higher than the U.S. statutory rate of 21% due to jurisdictional mix of earnings and unfavorable adjustments from foreign currency fluctuations in South America[79] 10. OTHER CURRENT LIABILITIES Other current liabilities decreased to $2,774 million at September 30, 2024, primarily due to lower advances on sales and income tax payable, partially offset by a $103 million deposit Other Current Liabilities breakdown | Other Current Liabilities | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------------------ | :---------------- | :---------------- | | Unrealized losses on derivative contracts, at fair value | 1,100 | 1,038 | | Accrued liabilities | 784 | 865 | | Advances on sales | 279 | 463 | | Dividends payable | 190 | 96 | | Income tax payable | 105 | 238 | | Disposition deposit | 103 | — | | Other | 213 | 213 | | Total | 2,774 | 2,913 | - A $103 million refundable deposit related to the sale of BP Bunge Bioenergia was recorded in Other current liabilities at September 30, 2024[82] - Dividends payable increased from $96 million to $190 million, reflecting higher accrued dividends[82] 11. FAIR VALUE MEASUREMENTS Bunge measures financial instruments, including derivatives and RMI, at fair value using a three-level hierarchy, with Level 3 measurements involving significant unobservable inputs - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[87][89] Fair Value Assets | Fair Value Assets (Sep 30, 2024) | Level 1 ($M) | Level 2 ($M) | Level 3 ($M) | Total ($M) | | :------------------------------- | :----------- | :----------- | :----------- | :----------- | | Cash equivalents | 150 | 20 | — | 170 | | Readily marketable inventories | — | 5,067 | 1,128 | 6,195 | | Unrealized gain on derivative contracts | 140 | 813 | 74 | 1,028 | | Other | 82 | 33 | — | 115 | | Total Assets | 372 | 5,933 | 1,202 | 7,507 | Fair Value Liabilities | Fair Value Liabilities (Sep 30, 2024) | Level 1 ($M) | Level 2 ($M) | Level 3 ($M) | Total ($M) | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Trade accounts payable | — | 394 | 175 | 569 | | Unrealized loss on derivative contracts | 186 | 1,004 | 57 | 1,270 | | Total Liabilities | 186 | 1,398 | 232 | 1,816 | - Level 3 classifications for RMI, physically settled forward contracts, and Trade accounts payable are primarily due to management estimations for transportation costs and local market adjustments, particularly in Brazil and Canada, where market-corroborated information is limited[101] 12. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Bunge uses derivative instruments for hedge accounting and economic hedging to manage interest rate, foreign currency, and commodity risks, with impacts recognized across various income statement lines - Bunge uses derivatives for both hedge accounting (fair value, cash flow, net investment hedges) and economic hedging purposes to manage interest rate, foreign currency, and commodity risks[112][113][120][121][122] Hedging Instrument Type (Notional Amount) | Hedging Instrument Type (Notional Amount) | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :---------------------------------------- | :---------------- | :---------------- | | Fair value hedges of interest rate risk | 2,700 | 2,900 | | Cash flow hedges of currency risk | 109 | 153 | | Net investment hedges | 1,194 | 1,112 | Economic Derivatives | Economic Derivatives (Sep 30, 2024) | Long ($M) | Short ($M) | | :---------------------------------- | :-------- | :--------- | | Interest rate (Swaps, Futures, Forwards, Options) | 295 | (1,721) | | Currency (Forwards, Swaps, Futures, Options) | 13,490 | (13,379) | | Agricultural commodities (Metric Tons) | 23,051,452 | (39,065,831) | | Ocean freight (Hire Days) | — | (9,538) | | Natural gas (MMBtus) | 11,999,645 | (100) | | Electricity (Mwh) | 67,321 | — | | Energy - other (Metric Tons) | 267,488 | — | | Energy - CO2 (Metric Tons) | 645,000 | — | | Other (Swaps and futures) | 90 | (90) | Income Statement Classification (Three Months Ended Sep 30) | Income Statement Classification (Three Months Ended Sep 30) | 2024 Gain (Loss) ($M) | 2023 Gain (Loss) ($M) | | :---------------------------------------------------------- | :-------------------- | :-------------------- | | Net sales (Hedge accounting - Foreign currency) | (1) | 2 | | Cost of goods sold (Total) | (200) | 69 | | Interest expense (Hedge accounting - Interest rate) | (31) | (35) | | Foreign exchange (losses) gains – net (Total) | (7) | 5 | Income Statement Classification (Nine Months Ended Sep 30) | Income Statement Classification (Nine Months Ended Sep 30) | 2024 Gain (Loss) ($M) | 2023 Gain (Loss) ($M) | | :--------------------------------------------------------- | :-------------------- | :-------------------- | | Net sales (Hedge accounting - Foreign currency) | (1) | 6 | | Cost of goods sold (Total) | (479) | 848 | | Selling, general & administrative expenses (Hedge Accounting - Foreign exchange) | — | 1 | | Interest expense (Total) | (92) | (97) | | Foreign exchange (losses) gains – net (Total) | (5) | (22) | 13. DEBT Bunge's total debt increased to $6,195 million at September 30, 2024, primarily due to $2.0 billion in senior notes for the Viterra acquisition, and updated credit facilities Debt Category | Debt Category | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------ | :---------------- | :---------------- | | Short-term debt | 755 | 797 | | Current portion of long-term debt | 663 | 5 | | Long-term debt | 4,777 | 4,080 | | Total debt | 6,195 | 4,882 | - The increase in total debt is primarily due to the issuance of $2.0 billion in senior notes for the Viterra acquisition, partially offset by the prepayment of a $750 million term loan due in 2025[137][240] - Bunge updated its revolving credit facilities, including a new $3.2 billion 5-year agreement and an accordion provision for an additional $1.75 billion in its $3.5 billion 3-year facility, increasing total committed capacity upon Viterra acquisition completion[138][139] - Bunge completed the sale and issuance of three tranches of unsecured senior notes totaling $2.0 billion on September 17, 2024, with proceeds intended to fund a portion of the Viterra acquisition cash consideration and repay Viterra debt[142] 14. RELATED PARTY TRANSACTIONS Bunge engages in various transactions with related parties, including commodity purchases and sales, which are not material to consolidated results - Related party purchases comprised approximately 9% or less of total Cost of goods sold for the three and nine months ended September 30, 2024 and 2023[148] - Related party sales comprised approximately 2% or less of total Net sales for the three and nine months ended September 30, 2024 and 2023[148] - Advances to unconsolidated investees comprised approximately 4% or less of total Other current assets and 8% or less of total Other non-current assets at September 30, 2024 and December 31, 2023[151] 15. COMMITMENTS AND CONTINGENCIES Bunge is involved in legal proceedings, primarily non-income tax and labor claims in South America, with $175 million in non-current provisions and various guarantees - Bunge records liabilities for legal matters when the exposure is probable and can be reasonably estimated, not expecting a material adverse effect on financial condition, results of operations, or liquidity[153] Non-Current Liabilities (Provisions) | Non-Current Liabilities (Provisions) | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :----------------------------------- | :---------------- | :---------------- | | Non-income tax claims | 21 | 19 | | Labor claims | 48 | 66 | | Civil and other claims | 106 | 114 | | Total | 175 | 199 | - Outstanding Brazilian indirect tax claims (ICMS and PIS/COFINS) totaled $579 million at September 30, 2024[155] Guarantees | Guarantees (Sep 30, 2024) | Recorded Liability ($M) | Maximum Potential Future Payments ($M) | | :------------------------ | :---------------------- | :------------------------------------- | | Unconsolidated affiliates guarantee | 16 | 150 | | Residual value guarantee | — | 384 | | Russia disposition indemnity | 9 | 235 | | Other guarantees | — | 12 | | Total | 25 | 781 | 16. OTHER NON-CURRENT LIABILITIES Other non-current liabilities decreased to $670 million at September 30, 2024, primarily due to lower unrealized losses on derivatives and reduced pension obligations Other Non-Current Liabilities breakdown | Other Non-Current Liabilities | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :---------------------------------------------- | :---------------- | :---------------- | | Labor, legal, and other provisions | 194 | 218 | | Pension and post-retirement obligations | 153 | 170 | | Uncertain income tax positions | 75 | 68 | | Unrealized losses on derivative contracts, at fair value | 147 | 260 | | Other | 101 | 108 | | Total | 670 | 824 | - Unrealized losses on derivative contracts decreased by $113 million, contributing to the overall reduction in other non-current liabilities[159] - Bunge utilized approximately $377 million of plan assets to purchase a buy-in contract for a U.S. pension plan on October 2, 2024, and plans to terminate the plan in H2 2025[159] 17. EQUITY Total Bunge shareholders' equity decreased by $716 million to $10,135 million at September 30, 2024, due to share repurchases, comprehensive loss, and dividends Equity Component | Equity Component | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :---------------------------------------------- | :---------------- | :---------------- | | Registered shares | 1 | 1 | | Additional paid-in capital | 5,881 | 5,900 | | Retained earnings | 12,231 | 12,077 | | Accumulated other comprehensive income (loss) | (6,354) | (6,054) | | Treasury shares, at cost | (1,624) | (1,073) | | Total Bunge shareholders' equity | 10,135 | 10,851 | | Noncontrolling interest | 1,021 | 963 | | Total equity | 11,156 | 11,814 | - Bunge repurchased 6,440,930 shares for $600 million during the nine months ended September 30, 2024. As of September 30, 2024, $800 million remained outstanding for repurchases under the program[160][256] - Shareholders approved a cash dividend distribution of $2.72 per share for fiscal year 2024, payable in four quarterly installments of $0.68 per share[161] Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :-------------------------------------------- | :---------------- | :---------------- | | Foreign Exchange Translation Adjustment | (5,855) | (5,489) | | Deferred Gains (Losses) on Hedging Activities | (379) | (445) | | Pension and Other Postretirement Liability Adjustments | (120) | (120) | | Total | (6,354) | (6,054) | 18. EARNINGS PER SHARE Diluted earnings per share for Bunge shareholders decreased significantly for both the three and nine months ended September 30, 2024 Earnings per share | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Bunge shareholders ($M) | 221 | 373 | 535 | 1,627 | | Weighted-average number of shares outstanding: Basic | 140,519,185 | 149,195,908 | 141,875,297 | 149,958,262 | | Weighted-average number of shares outstanding: Diluted | 142,145,601 | 151,216,856 | 143,571,879 | 151,891,814 | | Earnings per share: Basic | $1.57 | $2.50 | $3.77 | $10.85 | | Earnings per share: Diluted | $1.56 | $2.47 | $3.73 | $10.71 | - Diluted EPS decreased by $0.91 (36.84%) for the three months and $6.98 (65.17%) for the nine months ended September 30, 2024, compared to the prior year[165] 19. SEGMENT INFORMATION Bunge operates in Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy segments, with Agribusiness handling high-volume commodities and Sugar and Bioenergy being divested - Bunge's reportable segments are Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy, with remaining operations classified as Corporate and Other[166][167] - The Agribusiness segment deals with high volume, low margin agricultural commodities. The Refined and Specialty Oils segment processes vegetable oils, and the Milling segment processes wheat and corn[168] - The Sugar and Bioenergy segment primarily includes the BP Bunge Bioenergia joint venture, which Bunge is divesting[168] Segment Performance (Three Months Ended Sep 30, 2024) | Segment (Three Months Ended Sep 30, 2024) | Net Sales to External Customers ($M) | Gross Profit ($M) | Total Segment EBIT ($M) | | :---------------------------------------- | :----------------------------------- | :---------------- | :---------------------- | | Agribusiness | 9,292 | 392 | 322 | | Refined and Specialty Oils | 3,158 | 338 | 200 | | Milling | 407 | 43 | 17 | | Sugar and Bioenergy | 38 | 1 | 6 | | Corporate and Other | 13 | (2) | (138) | | Total | 12,908 | 772 | 407 | Segment Performance (Nine Months Ended Sep 30, 2024) | Segment (Nine Months Ended Sep 30, 2024) | Net Sales to External Customers ($M) | Gross Profit ($M) | Total Segment EBIT ($M) | | :--------------------------------------- | :----------------------------------- | :---------------- | :---------------------- | | Agribusiness | 28,689 | 1,135 | 738 | | Refined and Specialty Oils | 9,519 | 1,012 | 611 | | Milling | 1,189 | 169 | 88 | | Sugar and Bioenergy | 130 | 3 | 9 | | Corporate and Other | 39 | (7) | (421) | | Total | 39,566 | 2,312 | 1,025 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Bunge's financial performance, condition, and liquidity, highlighting decreased net income and segment EBIT, and discussing key financial changes - Net income attributable to Bunge decreased by $152 million (40.75%) for the three months and $1,092 million (67.12%) for the nine months ended September 30, 2024, primarily due to lower Segment EBIT[184] - Diluted EPS decreased by $0.91 (36.84%) to $1.56 for the three months and $6.98 (65.17%) to $3.73 for the nine months ended September 30, 2024[185] - Total Segment EBIT decreased by $177 million (30.31%) for the three months and $1,357 million (56.97%) for the nine months ended September 30, 2024, mainly due to lower gross profit in the Agribusiness segment[186] - Income tax expense decreased due to lower pre-tax income, partially offset by unfavorable discrete tax adjustments[187] Executive Summary This summary provides a high-level overview of Bunge Global SA's financial performance for the three and nine months ended September 30 Key Financial Metrics | Metric | Three Months Ended Sep 30, 2024 ($M) | Three Months Ended Sep 30, 2023 ($M) | Nine Months Ended Sep 30, 2024 ($M) | Nine Months Ended Sep 30, 2023 ($M) | | :---------------------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Net Income (Loss) Attributable to Bunge | 221 | 373 | 535 | 1,627 | | Earnings Per Share - Diluted | 1.56 | 2.47 | 3.73 | 10.71 | | Total Segment EBIT | 407 | 584 | 1,025 | 2,382 | | Income Tax (Expense) Benefit | (89) | (114) | (236) | (495) | - Working capital decreased by $435 million from December 31, 2023, to September 30, 2024, primarily due to higher current portion of long-term debt and lower other current assets and trade accounts receivable, partially offset by higher inventories and cash[188] Segment Overview & Results of Operations This section provides an overview of Bunge's core and non-core segments, detailing their financial results and key performance drivers - Bunge's operations are classified into Core (Agribusiness, Refined and Specialty Oils, Milling) and Non-core (Sugar & Bioenergy) segments, plus Corporate and Other[189] Segment EBIT | Segment EBIT (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :-------------------------------------- | :-------- | :-------- | :------- | | Agribusiness | 738 | 1,951 | (62)% | | Refined and Specialty Oils | 611 | 677 | (10)% | | Milling | 88 | 46 | 91% | | Corporate and Other | (421) | (417) | (1)% | | Sugar and Bioenergy | 9 | 125 | (93)% | | Total Segment EBIT | 1,025 | 2,382 | (57)%| Core Segments This section details the financial performance of Bunge's core business segments: Agribusiness, Refined and Specialty Oils, and Milling Agribusiness Segment The Agribusiness segment experienced a significant decline in EBIT due to lower gross profit in oilseed processing and a $19 million impairment charge Agribusiness Segment Performance (Three Months Ended Sep 30) | Agribusiness Segment (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :----------------------------------------------- | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 19,892 | 18,854 | 6% | | Net sales | 9,292 | 10,082 | (8)% | | Gross profit | 392 | 645 | (39)% | | Foreign exchange (losses) gains – net | 20 | (52) | 138% | | Income (loss) from affiliates | (26) | (14) | 86% | | Total Agribusiness Segment EBIT | 322 | 461 | (30)% | Agribusiness Segment Performance (Nine Months Ended Sep 30) | Agribusiness Segment (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :---------------------------------------------- | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 60,663 | 55,497 | 9% | | Net sales | 28,689 | 31,809 | (10)% | | Gross profit | 1,135 | 2,450 | (54)% | | Foreign exchange (losses) gains – net | (81) | (77) | 5% | | Other income (expense) – net | 188 | 54 | 248% | | Income (loss) from affiliates | (66) | (19) | 247% | | Total Agribusiness Segment EBIT | 738 | 1,951 | (62)% | - Processing net sales decreased 8% (three months) and 12% (nine months) due to lower average sales prices, partially offset by higher volumes in Argentina (three months) and Europe softseed (nine months)[194][195][199] - Merchandising net sales decreased 7% (three months) and 4% (nine months) due to lower average sales prices, partially offset by increased volumes[196][200] - A $19 million impairment charge on a North American minority investment contributed to the increased loss from affiliates[198][203] Refined and Specialty Oils Segment The Refined and Specialty Oils segment's EBIT decreased due to lower gross profit from soybean oil refining margins and unfavorable foreign exchange results Refined and Specialty Oils Segment Performance (Three Months Ended Sep 30) | Refined and Specialty Oils Segment (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :------------------------------------------------------------- | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 2,334 | 2,278 | 2% | | Net sales | 3,158 | 3,601 | (12)% | | Gross profit | 338 | 352 | (4)% | | Total Refined and Specialty Oils Segment EBIT | 200 | 227 | (12)% | Refined and Specialty Oils Segment Performance (Nine Months Ended Sep 30) | Refined and Specialty Oils Segment (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :------------------------------------------------------------ | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 6,829 | 6,636 | 3% | | Net sales | 9,519 | 11,090 | (14)% | | Gross profit | 1,012 | 1,027 | (1)% | | Foreign exchange (losses) gains – net | (21) | 8 | (363)% | | Total Refined and Specialty Oils Segment EBIT | 611 | 677 | (10)% | - Net sales decreased due to lower sales prices driven by price stabilization and increased global supply, partially offset by increased volumes in Asia and North America[206][208] - The nine-month EBIT decrease was primarily due to unfavorable foreign exchange results, including the devaluation of the Egyptian pound[210] Milling Segment The Milling segment's EBIT decreased for three months but increased for nine months, driven by varying gross profit in South America wheat milling Milling Segment Performance (Three Months Ended Sep 30) | Milling Segment (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :------------------------------------------ | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 961 | 890 | 8% | | Net sales | 407 | 479 | (15)% | | Gross profit | 43 | 50 | (14)% | | Total Milling Segment EBIT | 17 | 23 | (26)% | Milling Segment Performance (Nine Months Ended Sep 30) | Milling Segment (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :----------------------------------------- | :-------- | :-------- | :------- | | Volumes (thousand metric tons) | 2,806 | 2,555 | 10% | | Net sales | 1,189 | 1,484 | (20)% | | Gross profit | 169 | 121 | 40% | | Total Milling Segment EBIT | 88 | 46 | 91% | - Net sales decreased in both periods due to lower sales prices in South American wheat milling and North American corn milling, partially offset by increased volumes[212][213] - The nine-month EBIT increase was primarily driven by higher Gross profit in South America wheat milling[214] Corporate and Other Corporate and Other EBIT improved for three months due to lower variable compensation but decreased for nine months due to higher acquisition and integration costs Corporate and Other Performance (Three Months Ended Sep 30) | Corporate and Other (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :---------------------------------------------- | :-------- | :-------- | :------- | | Net sales | 13 | 9 | 44% | | Gross profit | (2) | (4) | (50)% | | Selling, general and administrative expense | (161) | (178) | (10)% | | Other income (expense) – net | 23 | (7) | 429% | | Total Corporate and Other EBIT | (138) | (182) | 24% | Corporate and Other Performance (Nine Months Ended Sep 30) | Corporate and Other (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :--------------------------------------------- | :-------- | :-------- | :------- | | Net sales | 39 | 29 | 34% | | Gross profit | (7) | (11) | (36)% | | Selling, general and administrative expense | (494) | (430) | 15% | | Other income (expense) – net | 74 | 34 | 118% | | Income (loss) from affiliates | 1 | (17) | 106% | | Total Corporate and Other EBIT | (421) | (417) | (1)% | - Acquisition and integration costs for the Viterra acquisition were $62 million (three months) and $185 million (nine months) in 2024, compared to $48 million and $66 million in 2023[217][218] Non-core Segment (Sugar and Bioenergy) The Sugar and Bioenergy segment's EBIT significantly decreased due to less favorable results from BP Bunge Bioenergia, including foreign exchange losses and lower margins Sugar and Bioenergy Segment Performance (Three Months Ended Sep 30) | Sugar and Bioenergy Segment (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :------------------------------------------------------ | :-------- | :-------- | :------- | | Net sales | 38 | 56 | (32)% | | Gross profit | 1 | 2 | (50)% | | Income (loss) from affiliates | 6 | 53 | (89)% | | Total Sugar and Bioenergy Segment EBIT | 6 | 55 | (89)% | Sugar and Bioenergy Segment Performance (Nine Months Ended Sep 30) | Sugar and Bioenergy Segment (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :----------------------------------------------------- | :-------- | :-------- | :------- | | Net sales | 130 | 192 | (32)% | | Gross profit | 3 | 4 | (25)% | | Income (loss) from affiliates | 8 | 119 | (93)% | | Total Sugar and Bioenergy Segment EBIT | 9 | 125 | (93)% | - The decrease in EBIT was primarily due to foreign exchange losses on U.S. dollar denominated debt of BP Bunge Bioenergia and lower gross margins from higher operating costs and lower ethanol prices[220][221] Interest Interest income and expense both decreased for the three and nine months ended September 30, remaining consistent with prior periods due to stable debt and rates Interest Income and Expense (Three Months Ended Sep 30) | Metric (Three Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :--------------------------------- | :-------- | :-------- | :------- | | Interest income | 33 | 38 | (13)% | | Interest expense | (127) | (133) | (5)% | Interest Income and Expense (Nine Months Ended Sep 30) | Metric (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | % Change | | :-------------------------------- | :-------- | :-------- | :------- | | Interest income | 112 | 121 | (7)% | | Interest expense | (358) | (374) | (4)% | - Interest income and expense remained consistent with the prior period due to similar average debt levels and substantially flat interest rates[223][224] Liquidity and Capital Resources Bunge manages financial risks and liquidity, with working capital decreasing, total debt increasing due to Viterra acquisition financing, and operating cash flows declining - Bunge's main financial objectives are to manage financial risks, ensure consistent access to liquidity, and minimize the cost of capital[227] Working Capital This section analyzes changes in Bunge's working capital components, including cash, receivables, inventories, and current liabilities Working Capital Components | Metric | Sep 30, 2024 ($M) | Sep 30, 2023 ($M) | Dec 31, 2023 ($M) | | :------------------------------------ | :---------------- | :---------------- | :---------------- | | Cash and cash equivalents | 2,836 | 2,173 | 2,602 | | Trade accounts receivable, net | 2,100 | 2,509 | 2,592 | | Inventories | 7,465 | 7,548 | 7,105 | | Other current assets | 3,518 | 4,394 | 4,051 | | Total current assets | 15,919 | 16,624 | 16,350 | | Short-term debt | 755 | 914 | 797 | | Current portion of long-term debt | 663 | 301 | 5 | | Trade accounts payable | 3,211 | 3,975 | 3,664 | | Other current liabilities | 2,774 | 2,738 | 2,913 | | Total current liabilities | 7,691 | 8,245 | 7,687 | | Working capital | 8,228 | 8,379 | 8,663 | | Current ratio | 2.07 | 2.02 | 2.13 | - Working capital decreased by $435 million from December 31, 2023, to September 30, 2024, primarily due to a higher current portion of long-term debt and lower other current assets and trade accounts receivable, partially offset by higher inventories and cash[188][228] - Cash and cash equivalents increased by $234 million from December 31, 2023, to $2,836 million at September 30, 2024[229] - Inventories increased by $360 million from December 31, 2023, primarily due to increased volumes with the timing of the South American harvest[231] Debt This section details Bunge's debt structure, including short-term and long-term obligations, and changes related to financing activities Debt Overview | Debt Category | Sep 30, 2024 ($M) | Sep 30, 2023 ($M) | Dec 31, 2023 ($M) | | :------------------------------------------ | :---------------- | :---------------- | :---------------- | | Short-term debt | 755 | 914 | 797 | | Long-term debt, including current portion | 5,440 | 4,268 | 4,085 | | Total debt | 6,195 | 5,182 | 4,882 | | Average total debt outstanding (Nine Months Ended Sep 30) | 5,267 | 5,323 | 5,293 | - Total debt increased by $1,313 million from December 31, 2023, to $6,195 million at September 30, 2024, primarily due to the issuance of $2.0 billion in senior notes for the Viterra acquisition, partially offset by a $750 million term loan prepayment[240] Short-term Debt | Short-term Debt (Sep 30, 2024) | Outstanding Balance ($M) | Weighted Average Interest Rate | | :----------------------------- | :----------------------- | :----------------------------- | | Bank borrowings | 755 | 13.28% | | Commercial paper | — | — | - Bunge's credit ratings were upgraded by Standard & Poor's (BBB+ with CreditWatch Positive for A-), Moody's (Baa1 stable outlook), and Fitch (BBB+ stable outlook) following the Viterra acquisition announcement and related financing[251][252] Equity This section outlines changes in Bunge's total equity and Bunge shareholders' equity, including impacts from net income, share repurchases, and dividends Equity Components | Equity Component | Sep 30, 2024 ($M) | Dec 31, 2023 ($M) | | :---------------------------------------------- | :---------------- | :---------------- | | Total Bunge shareholders' equity | 10,135 | 10,851 | | Noncontrolling interest | 1,021 | 963 | | Total equity | 11,156 | 11,814 | - Total Bunge shareholders' equity decreased by $716 million, primarily due to $600 million in share repurchases, $300 million in other comprehensive loss, and $380 million in declared dividends, partially offset by $535 million in net income[255] - Bunge repurchased 6,440,930 shares for $600 million during the nine months ended September 30, 2024, with $800 million remaining under the program[256] Cash Flows This section analyzes Bunge's cash flows from operating, investing, and financing activities for the nine months ended September 30 Cash Flow Activities | Cash Flow Activity (Nine Months Ended Sep 30) | 2024 ($M) | 2023 ($M) | | :-------------------------------------------- | :-------- | :-------- | | Operating activities | 847 | 1,860 | | Investing activities | (957) | (646) | | Financing activities | 376 | (213) | | Net increase (decrease) in cash | 266 | 1,041 | - Cash provided by operating activities decreased by $1,013 million, primarily due to lower reported net income[260] - Cash used for investing activities increased by $311 million, mainly due to lower proceeds from asset disposals and higher capital expenditures, partially offset by higher net proceeds from investments in affiliates[262] - Cash provided by financing activities increased by $589 million, driven by net cash proceeds of $1,278 million from short and long-term debt, partially offset by share repurchases and dividends[263] Off-Balance Sheet Arrangements This section refers to detailed disclosures regarding Bunge's off-balance sheet arrangements, as presented in the commitments and contingencies notes - Bunge's off-balance sheet arrangements are detailed in Note 15 - Commitments and Contingencies[265] Dividends This section outlines Bunge's dividend payments and approved distribution plans for fiscal year 2024 - Bunge paid a regular quarterly cash dividend of $0.68 per share on September 2, 2024. Shareholders approved a total cash dividend of $2.72 per share for fiscal year 2024, payable in four equal quarterly installments[266] Critical Accounting Policies and Estimates This section highlights Bunge's critical accounting policies and estimates that require significant management judgment and impact financial reporting - Critical accounting policies are those significant to financial condition and results of operations, requiring significant management judgment. A complete discussion is available in Note 1 to the 2023 Annual Report on Form 10-K[267] Item 3. Quantitative and Qualitative Disclosures About Market Risk Bunge manages market risks including commodity, currency, interest rate, and energy price fluctuations using derivatives under a global governance framework, also monitoring credit risk - Bunge is exposed to market risks from changes in agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, energy costs, and inflationary pressures[269] - Derivative instruments are used to manage these exposures and position the overall portfolio, with fluctuations generally offset by changes in the fair value of underlying exposures[270] - Credit and counterparty risks are actively monitored through regular reviews, credit analysis, and global/corporate committees, with exposures reduced in certain high-risk cases[271][272] Risk Management Bunge employs a global governance framework to manage market risks, including commodity, currency, interest rate, and energy price fluctuations, using derivative instruments - Bunge uses derivative instruments to manage market risks, including commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs[270] - Risk management decisions are made in various locations, but exposure limits are centrally set and monitored under a global governance framework[269] Credit and Counterparty Risk Bunge is exposed to significant credit and counterparty risks from commercial transactions and derivative instruments, which are actively monitored - Bunge is subject to significant credit and counterparty risks from commercial sales and purchases, and OTC derivative instruments[271] - Credit and counterparty risk is actively monitored through reviews, credit analysis, and global committees, with increased focus during periods of tight credit markets or significant price volatility[271][272] Commodities Risk Bunge is exposed to price fluctuations in agricultural commodities due to unpredictable factors, managing this risk with derivative contracts and established policies - Bunge is exposed to price fluctuations in agricultural commodities due to unpredictable factors, including inflationary pressures[273] - Derivative contracts are used to manage exposure to adverse price movements, with established policies limiting unhedged fixed price positions[274] Daily Aggregated Position Value and Market Risk | Metric | Nine Months Ended Sep 30, 2024 ($M) | Year Ended Dec 31, 2023 ($M) | | :---------------------------------------------- | :---------------------------------- | :--------------------------- | | Highest daily aggregated position value (Value) | 762 | 459 | | Highest daily aggregated position value (Market Risk) | (76) | (46) | | Lowest daily aggregated position value (Value) | (407) | (502) | | Lowest daily aggregated position value (Market Risk) | (41) | (50) | Ocean Freight Risk Bunge manages ocean freight cost volatility, a significant operating expense, using time charter agreements and financial derivatives - Ocean freight costs are a significant portion of operating costs and are subject to market price variations[278] - Bunge uses time charter agreements and financial derivatives like freight forward agreements (FFAs) to hedge ocean freight costs[278][290] Energy Risk Bunge manages price risk associated with various energy commodities (electricity, natural gas, bunker fuel) using financial derivatives - Bunge purchases various energy commodities (electricity, natural gas, bunker fuel) which are subject to price risk, including inflationary pressures[279] - Financial derivatives, including exchange traded and OTC swaps and options, are used to manage exposure to volatility in energy costs and market prices[279][291] Currency Risk Bunge manages foreign currency exposures, primarily in the Brazilian real, Canadian dollar, Euro, and Chinese yuan, using derivative instruments - Bunge's primary foreign currency exposures include the Brazilian real, Canadian dollar, Euro, and Chinese yuan/renminbi[280] - Derivative instruments like foreign currency forward contracts, swaps, and options are used to reduce risk from exchange rate fluctuations[280][287] - The potential loss in fair value from a hypothetical 10% adverse change in foreign currency exchange rates was not material as of September 30, 2024[280] Interest Rate Risk Bunge is exposed to market risk from changes in interest rates on its fixed and floating rate debt, managing this with interest rate swap agreements - Bunge is exposed to market risk from changes in interest rates on its fixed and floating rate debt instruments[283] - A hypothetical 100 basis point increase or decrease in interest yields on fixed rate debt and swaps would result in a less than 3% change in fair value[284] - A hypothetical 100 basis point change in the applicable reference rate (e.g., SOFR) would result in an approximate $41 million change in interest expense on variable rate debt[285] - Interest rate swap agreements may be used to manage interest rate exposure, with some designated as fair value hedges[289] Inflation Risk Inflationary factors generally increase Bunge's labor, overhead, and other costs, potentially affecting financial results, though historically recovered via sales prices - Inflationary factors generally increase labor, overhead, and other costs, potentially affecting results of operations and financial position[286] - Historically, Bunge has recovered inflation impacts through sales price increases, but future ability to do so cannot be reasonably estimated[286] Derivative Instruments Bunge utilizes various derivative instruments, including foreign exchange, interest rate, commodity, ocean freight, and energy derivatives, to manage market risks - Bunge uses foreign exchange, interest rate, commodity, ocean freight, energy, and other derivatives (e.g., credit default swaps, carbon emission derivatives, equity derivatives) to manage various market risks[287][289][290][291] - The majority of commodity contracts are considered effective economic hedges but are not designated for hedge accounting, with changes in fair values included in Cost of goods sold[289] Item 4. Controls and Procedures Bunge's disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during the quarter - Bunge's disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2024[294] - No material changes occurred in internal control over financial reporting during the quarter ended September 30, 2024[295] - Bunge continues to migrate processes to shared business service models to consolidate back-office functions and standardize financial systems globally, which will involve aligning and streamlining internal controls[295] PART II — INFORMATION This section provides additional information, including legal proceedings, risk factors, equity security sales, and other required disclosures Item 1. Legal Proceedings Bunge is involved in various legal proceedings, primarily non-income tax and labor claims in South America, with management not expecting a material adverse effect - Bunge is involved in litigation and claims, primarily non-income tax and labor claims in South America, and other contract, antitrust, environmental, and government investigations[297] - Management believes the outcome of these proceedings, net of established reserves, will not have a material adverse effect on Bunge's consolidated financial position, results of operations, or liquidity[297] Reserved Amounts for Claims | Claim Type (Sep 30, 2024) | Reserved Amount ($M) | | :------------------------ | :------------------- | | Labor claims | 48 | | Civil claims | 106 | Item 1A. Risk Factors This section refers to the comprehensive discussion of risk factors in Bunge's 2023 Annual Report on Form 10-K, noting potential impacts from unknown risks - Investors should carefully consider the risk factors discussed in Part I, 'Item 1A. Risk Factors' in Bunge's 2023 Annual Report on Form 10-K[298] - Additional risks and uncertainties not currently known or deemed immaterial could also materially adversely affect the business[298] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q3 2024, Bunge repurchased 2,063,956 shares for approximately $200 million as part of its $2.0 billion share repurchase program Share Repurchase Activity (2024) | Period (2024) | Total Number of Shares Purchased | Average Share Price Paid | Maximum Dollar Value Remaining Under Program | | :------------------------ | :------------------------------- | :----------------------- | :------------------------------------------- | | July 1 - July 31 | — | — | $1,000,001,134 | | August 1 - August 31 | 2,063,956 | $96.90 | $800,001,209 | | September 1 - September 30 | — | — | $800,001,209 | | Total | 2,063,956 | $96.90 | | - The share repurchase program was expanded on June 12, 2023, to an aggregate unutilized capacity of $2.0 billion. As of September 30, 2024, $800 million remained outstanding for repurchases[302] Item 3. Defaults Upon Senior Securities No defaults upon senior securities were reported - No