With the completion of the sale of the Brazilian soy ingredients business in 2003, Bunge has four reporting segments: agribusiness, fertilizer, edible oil products and milling products, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. The agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The activities of the fertilizer segment include raw material mining, mixing fertilizer components and marketing products. The edible oil products segment involves the manufacturing and marketing of products derived from vegetable oils. The milling products segment involves the manufacturing and marketing of products derived primarily from wheat and corn.

The "Unallocated" column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consists primarily of corporate items not allocated to the operating segments, inter-segment eliminations and principally the Solae joint venture. Transfers between the segments are generally valued at market.

The revenues generated from these transfers are shown in the following table as "Inter-segment revenues."

operating segment information

(US$ in millions)	Agribusiness			Fertilizer			Edible Oil Products			Milling      Products			Other			Unallocated			Total
2004
Net sales to external customers	$	17,911		$	2,581		$	3,872		$	804		$	–		$	–		$	25,168
Intersegment revenues		1,433			–			50			17			–			(1,500	)		–
Gross profit(1)		936			601			257			92			–			–			1,886
Foreign exchange gain (loss)		(17	)		(32	)		5			–			–			13			(31	)
Interest income		21			50			6			3			–			23			103
Interest expense		(111	)		(50	)		(32	)		(8	)		–			(13	)		(214	)
Segment operating profit		358			372			79			41			–			–			850
Depreciation, depletion and amortization expense		(89	)		(70	)		(41	)		(12	)		–			–			(212	)
Investments in affiliates		17			8			64			20			–			455			564
Total assets		5,690			2,428			1,512			328			–			949			10,907
Capital expenditures	$	211		$	158		$	59		$	9		$	–		$	–		$	437
2003
Net sales to external customers	$	16,224		$	1,954		$	3,184		$	751		$	52		$	–		$	22,165
Intersegment revenues		623			–			66			22			–			(711	)		–
Gross profit(2)(3)		549			373			284			81			18			–			1,305
Foreign exchange gain (loss)		89			(20	)		–			–			(1	)		24			92
Interest income		26			53			6			–			–			17			102
Interest expense		(80	)		(35	)		(24	)		(8	)		(2	)		(66	)		(215	)
Segment operating profit(4)		252			242			86			30			8			–			618
Depreciation, depletion and amortization expense		(77	)		(57	)		(37	)		(13	)		–			–			(184	)
Investments in affiliates		5			6			36			8			–			482			537
Total assets		6,177			1,738			908			324			–			737			9,884
Capital expenditures	$	169		$	73		$	48		$	14		$	–		$	–		$	304
2002
Net sales to external customers	$	10,483		$	1,384		$	1,279		$	628		$	108		$	–		$	13,882
Intersegment revenues		511			–			–			–			–			(511	)		–
Gross profit(2)		783			293			151			77			34			–			1,338
Foreign exchange gain (loss)		(171	)		9			3			–			3			(23	)		(179	)
Interest income		22			36			1			2			–			10			71
Interest expense		(67	)		(46	)		(15	)		(10	)		(5	)		(33	)		(176	)
Segment operating profit		283			192			6			18			22			–			521
Depreciation, depletion and amortization expense		(75	)		(56	)		(18	)		(9	)		(10	)		–			(168	)
Investments in affiliates		1			6			–			9			–			36			52
Total assets		4,883			1,259			1,409			276			320			202			8,349
Capital expenditures	$	137		$	58		$	16		$	12		$	17		$	–		$	240

(1)	In 2004, Bunge recorded pretax long-lived asset impairment charges of $7 million in its edible oil segment, related to its refining and packaging operations in North and South America. In addition, in 2004, Bunge recorded a $10 million long-lived asset impairment charge and a $7 million restructuring charge in its agribusiness segment, related to its oilseed operations in Western Europe. These charges are included in cost of goods sold in Bunge's consolidated statement of income (see Note 10).
(2)	In the fourth quarter of 2003, Bunge recorded in cost of goods sold in its consolidated statements of income a pretax goodwill impairment charge of $16 million and a pretax long-lived asset impairment charge of $40 million in its agribusiness segment, relating to fixed assets at its European oilseed processing facilities (see Note 8 and Note 10). In the fourth quarter of 2002, Bunge recorded in cost of goods sold in its consolidated statements of income a pretax impairment charge of $5 million, relating to its U.S. edible oil bottling facilities.
(3)	Agribusiness gross profit for the year ended December 31, 2003, included a pretax non-cash curtailment gain of $15 million reflecting a reduction of pension and postretirement healthcare benefits of certain U.S. employees recorded in cost of goods sold. Edible oil products and milling products gross profit included a pretax non-cash curtailment gain of $1 million and $1 million, respectively, for year ended December 31, 2003, relating to the reduction of pension and postretirement healthcare benefits of certain U.S. employees recorded in cost of goods sold.
(4)	Agribusiness segment profit for year ended December 31, 2003, included pretax non-cash curtailment gains totaling $20 million reflecting a reduction of pension and postretirement healthcare benefit liabilities due to the transfer of employees to Solae and a reduction of pension and postretirement healthcare benefits of certain U.S. employees recorded in cost of goods sold and in selling, general and administrative expenses (SG&A). Edible oil products and milling products segment operating profit included total pretax non-cash curtailment gains of $2 million and $2 million, respectively, for the year ended December 31, 2003, relating to the reduction of pension and postretirement healthcare benefits of certain U.S. employees recorded in cost of goods sold and in SG&A.

Segment operating profit, a measure of segment profitability, includes an allocation of the financial costs of carrying operating working capital, including foreign exchange gains and losses and interest expense on debt financing working capital and interest income earned on working capital items, which is consistent with how management views the results for operational purposes.

A reconciliation of income from continuing operations before income tax and minority interest to total consolidated segment operating profit follows:

Year Ended December 31,
(US$ in millions)		2004			2003			2002
Income from continuing
	operations before income
	tax and minority interest	$	904		$	723		$	481
Unallocated (income)
	expense—net(1)		(54	)		6			40
Gain on sale of
	ingredients business		–			(111	)		–
Segment operating profit		$	850		$	618		$	521

(1)	Unallocated (income) expense—net included interest income, interest expense, foreign exchange gains and losses and other income and expense not directly attributable to Bunge's operating segments.

Net sales by product group to external customers were as follows:

Year Ended December 31,
(US$ in millions)			2004		2003		2002
Agricultural
	commodities products	$	17,911	$	16,224	$	10,483
Fertilizer products			2,581		1,954		1,384
Edible oil products			3,872		3,184		1,279
Wheat milling products			479		500		399
Corn milling products			325		251		229
Soy ingredient products			–		52		108
Total		$	25,168	$	22,165	$	13,882

Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows:

Year Ended December 31,
(US$ in millions)		2004		2003		2002
Net sales to external customers:
United States	$	6,783	$	6,129	$	4,482
Brazil		4,939		3,894		3,253
Argentina		262		275		452
Canada		1,160		1,216		203
Europe		8,777		7,176		4,232
Asia		3,225		3,451		1,229
Rest of world		22		24		31
Total	$	25,168	$	22,165	$	13,882

December 31,
(US$ in millions)		2004		2003		2002
Long-lived assets(1):
United States	$	1,021	$	1,052	$	726
Brazil		1,759		1,323		1,002
Argentina		113		80		53
Europe		410		302		394
Rest of world		120		110		98
Unallocated(2)		–		–		89
Total	$	3,423	$	2,867	$	2,362

(1)	Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net and investments in affiliates.
(2)	Unallocated purchase price relating to the Cereol acquisition (see Note 8).