23. shareholders' equity
In June 2004, Bunge completed a public offering of 9,775,000 of its common shares for net proceeds of $331 million, after underwriting discounts, commissions and expenses. Bunge used the net proceeds of the offering to acquire the additional 17% of the total outstanding shares of Bunge Brasil, its publicly traded Brazilian subsidiary that it did not already own, for $314 million in cash (see Note 2).
In March 2002, Bunge sold 16,093,633 common shares in a public offering. Proceeds from this offering less underwriting discounts, commissions and expenses, were $292 million. The net proceeds were used to buy back shares held by minority shareholders in connection with Bunge's corporate restructuring of its Brazilian subsidiaries with the remainder used to reduce indebtedness under Bunge's commercial paper program.
accumulated other comprehensive income (loss) The following table summarizes the balances of related after tax components of accumulated other comprehensive income (loss):
(US$ in millions) |
Foreign Exchange Translation Adjustment |
|
Deferred Gain (Loss) on Hedging Activities |
|
Treasury Rate Lock Contracts |
|
Minimum Pension Liability |
|
Deferred Gain (Loss) on Investments |
|
Accumulated Other Comprehensive Income (Loss) |
|
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Balance, January 1, 2002 |
$ |
(695 |
) |
$ |
5 |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
(690 |
) |
Other comprehensive (loss) |
|
(403 |
) |
|
– |
|
|
(21 |
) |
|
(11 |
) |
|
(1 |
) |
|
(436 |
) |
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Balance, December 31, 2002 |
|
(1,098 |
) |
|
5 |
|
|
(21 |
) |
|
(11 |
) |
|
(1 |
) |
|
(1,126 |
) |
Other comprehensive income (loss) |
|
489 |
|
|
(12 |
) |
|
2 |
|
|
(10 |
) |
|
1 |
|
|
470 |
|
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Balance, December 31, 2003 |
|
(609 |
) |
|
(7 |
) |
|
(19 |
) |
|
(21 |
) |
|
– |
|
|
(656 |
) |
Other comprehensive income (loss) |
|
217 |
|
|
12 |
|
|
2 |
|
|
(2 |
) |
|
– |
|
|
229 |
|
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Balance, December 31, 2004 |
$ |
(392 |
) |
$ |
5 |
|
$ |
(17 |
) |
$ |
(23 |
) |
$ |
– |
|
$ |
(427 |
) |
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Bunge has significant operating subsidiaries in Brazil, Argentina and Europe. The functional currency of Bunge's subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign exchange translation gains and losses are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss).
|