Bunge Announces Reporting Segment Changes
Bunge Limited (NYSE:BG) has announced changes to its segment reporting, effective Q1 2021, to align with its new operating structure. Key changes include the elimination of the fertilizer segment, which is now part of Agribusiness, and a reorganization of grains and oilseeds operations into processing and merchandising categories. These adjustments reflect how the CEO assesses financial information for resource allocation. Notably, these changes do not affect previously reported financial statements. Financial data from 2020 has been recast to reflect the new structure.
- Realignment of reporting segments may enhance operational efficiency.
- New reporting structure aligns with CEO's resource allocation strategy.
- Elimination of fertilizer segment could indicate a lack of focus in this area.
Bunge Limited (NYSE:BG) announced today that it has changed its segment reporting to align with the Company's new value chain operating structure.
Beginning with the first quarter 2021, Bunge will report Core Segment results as follows: Agribusiness, which includes processing and merchandising; Refined and Specialty Oils; and Milling. Bunge will also continue to report Corporate and Other results and Non-core Segment results, which is made up of Sugar & Bioenergy.
The primary changes are elimination of the fertilizer reporting segment, the results of which are now included in the processing component of the Agribusiness reporting segment, the realignment of grains and oilseeds operations into processing and merchandising, as well as other immaterial reclassifications between Core and Corporate and Other segments.
The segment reporting changes reflect a corresponding change in how the Company’s Chief Executive Officer (its chief operating decision maker) reviews financial information in order to allocate resources and assess performance.
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 income (loss), comprehensive income (loss), changes in 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 2020, together with the corresponding financial information previously reported, accompanies this press release.
Financial Highlights
|
Year Ended December 31, 2020 |
||||||||||||||
(US$ in millions) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
||||||||||
Total Segment EBIT (a) |
$ |
(170 |
) |
$ |
738 |
|
$ |
351 |
|
$ |
714 |
|
$ |
1,633 |
|
Total Mark-to-market timing differences (b) |
410 |
|
(385 |
) |
161 |
|
4 |
|
190 |
|
|||||
Total Certain gains & (charges) (c) |
5 |
|
66 |
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FAQ
What changes has Bunge Limited made to its segment reporting?
Bunge Limited has changed its segment reporting to include Agribusiness, Refined and Specialty Oils, and Milling, eliminating the fertilizer segment.
When will Bunge Limited's new segment reporting take effect?
The new segment reporting by Bunge Limited will take effect in the first quarter of 2021.
How will the new segment reporting affect Bunge Limited's financial statements?
The changes in segment reporting will not impact previously reported consolidated financial statements.
Why did Bunge Limited change its segment reporting structure?
The change was made to better align with the company's new value chain operating structure and how the CEO reviews financial information.
Bunge Global SA
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