Bunge Limited: announces change in segment reporting

White Plains / NY. (bl) Bunge Limited, a leader in agriculture, food and ingredients, announced that it has changed its segment reporting to separately disclose corporate and other activities from its reportable segments. Previously, corporate costs and certain other activities were allocated to the Company’s reportable segments. Beginning with the first quarter 2020, Bunge will report segment results as follows: Agribusiness, Edible Oil Products, Milling Products, Sugar + Bioenergy, Fertilizer and Corporate + Other.

The segment reporting change reflects a corresponding change in how the Company’s chief operating decision maker (its Chief Executive Officer) reviews financial information in order to allocate resources and assess performance. The change also builds upon our previously-stated strategic priorities by providing enhanced visibility of segment performance, and improves the comparability of our segment results and corporate and other activities with those of our industry peers.

In conjunction with this change, certain prior year amounts have been recast to conform to the new segment reporting structure. These changes have no impact on previously-reported consolidated balance sheets, statements of operations, comprehensive income (loss), shareholders’ equity or cash flows.

To illustrate the impact of the new segment reporting structure, the recast of certain financial information for the four quarters and fiscal year ended 2019, together with that previously reported, accompanies this release.

Financial Highlights

	Year Ended December 31, 2019
(USD in millions)	Q1			Q2			Q3			Q4			Total
Total Segment Ebit (a)	USD	151		USD	354		USD	(1,440)		USD	44		USD	(891)
Certain gains + (charges) (b)	(15)			(16)			(1,744)			(239)			(2,014)
Total Segment Ebit, adjusted (a)	USD	166		USD	370		USD	304		USD	283		USD	1,123
.
Total Segment Ebit, adjusted, restated for Corporate + Other activities (a)
Agribusiness	USD	149		USD	211		USD	199		USD	240		USD	799
Oilseeds	115			174			138			76			503
Grains	34			37			62			164			297
Edible Oils	60			43			72			88			263
Milling	22			27			19			25			93
Sugar + Bioenergy	(18)			(3)			61			53			93
Fertilizer	2			6			22			32			62
Corporate + Other	(49)			86			(70)			(155)			(188)
Corporate (c)	(64)			(60)			(66)			(95)			(285)
Ventures and Other (d)	15			146			(4)			(60)			97
.
Total Segment Ebit, adjusted, as originally reported (a)
Agribusiness	USD	120		USD	189		USD	153		USD	177		USD	639
Oilseeds	98			164			107			41			410
Grains	22			25			46			136			229
Edible Oils	51			29			71			67			218
Milling	17			20			15			17			69
Sugar + Bioenergy	(23)			(9)			53			52			73
Fertilizer	1			6			22			26			55
Other	—			135			(10)			(56)			69

(a) Total Segment earnings before interest and tax (“Total Segment Ebit”) and Total Segment Ebit, adjusted are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included below.
(b) Certain gains + (charges) included in Total Segment Ebit. See Additional Financial Information in Bunge’s previously issued 2019 Quarterly Earnings Press Releases for details.
(c) Corporate includes salaries and overhead for corporate functions that are essential to the Company’s individual reporting segments but are not allocated to such segments because their operating performance is evaluated by the Company’s chief operating decision maker exclusive of these items.
(d) Includes the activities of Bunge Ventures and the Company’s captive insurance, securitization, and other activities.

Total Segment Ebit and Total Segment Ebit, adjusted

Bunge uses total segment earnings before interest and taxes (Total Segment Ebit) to evaluate Bunge’s operating performance. Total Segment Ebit excludes Ebit attributable to noncontrolling interests and is the aggregate of the earnings before interest and taxes of each of our reportable segments’ together with our Corporate and Other activities. Total Segment Ebit, adjusted, is calculated by excluding certain gains and charges as described above in Additional Financial Information from Total Segment Ebit. Total Segment Ebit and Total Segment Ebit, adjusted are non-GAAP financial measures and are not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge’s management believes these non-GAAP measures are a useful measure of its reportable segments’ operating profitability, since the measures allow for an evaluation of segment performance without regard to their financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge’s industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.

Below is a reconciliation of Net income attributable to Bunge to Total Segment Ebit, adjusted, for the four quarters and fiscal year ended 2019:

	Year Ended December 31, 2019
(USD in millions)	Q1			Q2			Q3			Q4			Total
Net income (loss) attributable to Bunge	USD	45		USD	214		USD	(1,488)		USD	(51)		USD	(1,280)
Interest income	(7)			(7)			(8)			(9)			(31)
Interest expense	75			88			86			90			339
Income tax expense (benefit)	38			60			(28)			16			86
(Income) loss from discontinued operations, net of tax	—			—			—			—			—
Noncontrolling interest share of interest and tax	—			(1)			(2)			(2)			(5)
Total Segment Ebit	151			354			(1,440)			44			(891)
Certain (gains) and charges	15			16			1,744			239			2,014
Total Segment Ebit, adjusted	USD	166		USD	370		USD	304		USD	283		USD	1,123